Acme

Topics: Optimization, Part-time, Linear programming Pages: 9 (1450 words) Published: April 27, 2015


Recommending a Low-Cost Customer Service Employee Daily Assignment Schedule University of Maryland University College

Executive Summary
Acme De Mexico’s Manager has requested assistance in developing a minimum cost daily assignment schedule for the customer service employees in their newly built store. Specifically, he wants to know the minimum total cost per day, which is the decision variable. He also wants to know the exact amount of part time and full time employees which will determine the total cost. The objective function is to minimize costs. Acme specified a minimum number of employees required for each shift, a maximum number of employees per shift, specific shifts for full time and part time workers, and a maximum percentage of 50% of the total hours for part time employees. These constraints were input into Microsoft solver, which determined $47,800 to be the minimum employee cost per day, employing 23 fulltime workers and 45 part time workers per day. Specific assumptions were made which will be discussed in detail, along with the impact of non-typical days. A sensitivity analysis will then be performed to determine how the percentage of part time employees’ constraint affects the total cost per day.

Introduction
Now the Acme De Mexico has completed the building process, it is now time to properly staff the store. The store manager, Mr. Rodriguez, has requested a minimum cost daily assignment schedule for the customer service employees at the new store. In order to have Acme De Mexico become a profitable business, it must make the best use of its resources (Jacobs & Chase, 2013). In this case the resources are time, money, and employees. In order to provide Mr. Rodriguez with the information he requested, linear programming will be utilized. Linear programming is the “several related mathematical techniques used to allocate limited resources among competing demands in an optimal way” (Jacobs & Chase, 2013, appendix A). In this case, we are given the following information. This report will provide an employee assignment schedule for a typical day, developed with a linear programming model (Attachment 1). This model and its cells will be referenced throughout the report. An explanation will be provided to explain the model to include the assumptions made. The report will also briefly touch on how non-typical days may affect the schedule. Employee Assignment Schedule

Acme De Mexico is open daily, from 7:00am to 11:00pm. Employee shifts are broken out over those 16 hours. For every hour of the day, a minimum amount of employees are required to be on the floor, which is depicted in the table below.

The minimum number of employees (limit) needed on the floor at a given hour is one of the constraints. This constraint is displayed in cells G22 though V22. Additionally, only 30 employees are allowed on the floor at any given time for safety reasons. This constraint can be seen in cells G26 though V26

There are 4 shifts for full time employees, and 13 shifts for part time employees. The shifts have been broken out in detail in the table below. Employee Type
Shift (hours)
Shift (time)
Lunch/Dinner (hour)
Lunch/Dinner (time)
Total Hours
Salary (per day)
Full Time
9 hours
7am-4pm
1 Hour
11am
9 hours
$1100
Full Time
9 hours
7am-4pm
1 Hour
12pm
9 hours
$1100
Full Time
9 hours
2pm-11pm
1 Hour
5pm
9 hours
$1100
Full Time
9 hours
2pm-11pm
1 Hour
6pm
9 hours
$1100
Part Time
4 hours
7am-11pm
N/A
N/A
4 hours
$500
Part Time
4 hours
8am-12pm
N/A
N/A
4 hours
$500
Part Time
4 hours
9am-1pm
N/A
N/A
4 hours
$500
Part Time
4 hours
10am-2pm
N/A
N/A
4 hours
$500
Part Time
4 hours
11am-3pm
N/A
N/A
4 hours
$500
Part Time
4 hours
12pm-4pm
N/A
N/A
4 hours
$500
Part Time
4 hours
1pm-5pm
N/A
N/A
4 hours
$500
Part Time
4 hours
2pm-6pm
N/A
N/A
4 hours
$500
Part...

References: Knode, C.S. (2011). Linear programming - Part 1 - Formulating the problem [video]. Retrieved from: http://vimeo.com/duffer44/linear-programming-part-1
Jacobs, F.R & Chase, R.B. (2013). Operations and supply management: The core, 3e. Chapter 1 and Appendix A
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