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EXAMPLE PROBLEMS
Example 1
Labor Scheduling
Arlington Bank of Commerce and Industry
is a busy bank that has requirements for
between 10 and 18 tellers depending on
the time of day. Lunchtime, from noon to
2 P.M., is usually heaviest.
The table below indicates the workers
needed at various hours that the bank
is open.
Copyright © 2010 Pearson
Education, Inc. Publishing as
Prentice Hall
Example 1
Labor Scheduling
The bank now employs 12 full-time tellers, but
many people are on its roster of available part-
time employees.
A part-time employee must put in exactly 4
hours per day but can start anytime between 9
A.M. and 1 P.M. Fulltimers, on the other hand,
work from 9 A.M. to 5 P.M. but are allowed 1
hour for lunch. (Half the full-timers eat at 11
A.M., the other half at noon.)
Copyright © 2010 Pearson
Education, Inc. Publishing as
Prentice Hall
Example 1
Labor Scheduling
By corporate policy, the bank limits part-time
hours to a maximum of 50% of the day’s total
requirement. Part-timers earn $6 per hour (or
$24 per day) on average, whereas full-timers
earn $75 per day in salary and benefits on
average.
The bank would like to set a schedule that
would minimize its total man-power costs. It
will release 1 or more of its full-time tellers if it
is profitable to do so.
Copyright © 2010 Pearson
Education, Inc. Publishing as
Prentice Hall
Example 1
Labor Scheduling
Time Number of Time Number of
Period Tellers Required Period Tellers Required
9 AM - 10 AM 10 1 PM - 2 PM 18
10 AM - 11 AM 12 2 PM - 3 PM 17
11 AM - Noon 14 3 PM - 4 PM 15
Noon - 1 PM 16 4 PM - 5 PM 10
F = Full-time tellers
P1 = Part-time tellers starting at 9 AM (leaving at 1 PM)
P2 = Part-time tellers starting at 10 AM (leaving at 2 PM)
P3 = Part-time tellers starting at 11 AM (leaving at 3 PM)
P4 = Part-time tellers starting at noon (leaving at 4 PM)
P5 = Part-time tellers starting at 1 PM (leaving at 5 PM)
Example2: MARKET SURVEY
Market Survey, Inc. (MSI), is a marketing firm that specializes in evaluating consumer research to new products,
services, and advertising campaigns. A client firm has requested assistance from MSI in ascertaining consumer
reaction to a recently marketing product for household use. During meetings with the client it was agreed that door-
to-door personal interviews would be used to obtain information from both households with children and
households without children. In addition, it was agreed that both day and evening interviews would be necessary in
order to allow for a variety of household work schedules. Specifically, the clients contract called for MSI to conduct
1000 interviews with the following quota guidelines:
INTERVIEW COST
HOUSEHOLD DAY EVENING
Children $20 $25
No children $18 $20
What is the household, time-of-day interview plan that will satisfy the contract requirements at a minimum total
interviewing cost?
Example 3: Production Scheduling