Operations Planning and Scheduling ⚫ CHAPTER 10 ⚫
10–37
in dealing with the seven care areas (interchangeable or not), decide how to handle
noninteger requirements (round or leave fractional), what to make a full-time week,
how to handle paid vacations, whether to allow some unpaid undertime, and the like.
Day 2
For the second day, each team is to prepare a three-page report (maximum) describing
their basic approach, strategy selected, spreadsheet (maybe sent by e-mail), and
reasons why it is best (including qualitative factors). The instructor can make a
transparency of the team results and lead the discussion of their results, seeing who
(1) had low cost (open up their spreadsheet) and (2) had best for qualitative reasons
(open up their spreadsheets). Maybe also bring out some basic analysis of:
F. Teaching Suggestions: Out-of-Class Exercise
A more traditional approach is to assign it as an out-of-class exercise. Tell the
students that they are to analyze the situation and can make some reasonable
simplifying assumptions, but their assignment is to bring to class a staffing plan that
they can share. They should be required to explain any assumptions made and to
defend how their plan meets the three objectives of the hospital.
In class it is best to start with a general discussion of the alternative approaches
that can be used to develop a staffing plan and how different approaches (level, chase,
and mixed) may impact the hospital’s objectives differently. Then have the students
present their plans and explain their analysis and rationale. You may have to be
prepared to show one of the plans provided to get the ball rolling.
After a few plans have been discussed, note that the differences are generally
accounted for by the differing assumptions that were made or the differing priorities
that were given the three objectives. Be sure that the students understand the impact
assumptions such as the following have on staffing plans:
❑ Using FTE nurses versus partial nurses—overtime would be more appropriate
when partial nurses are used.
❑ Interchangeability of nurses—the staffing plan would be more modularized by
department without this assumption.
❑ Use of vacation periods as needed—loss of flexibility here would probably
increase the requirements and costs.
The case can take as much time as you wish depending on the number of staffing
plans you have students present. You should allow at least 30 to 45 minutes to discuss
the issues and alternatives thoroughly.
⚫ PART 2 ⚫ Managing Customer Demand
10–38
APPENDIX A
Operations Planning and Scheduling ⚫ CHAPTER 10 ⚫
10–39
ADDITIONAL CASE
CASE: FOOD KING *
A. Synopsis
The Food King case is set in the grocery supermarket industry where competition is
severe and profit margins are a very small percentage of revenues. The principal in
the case, Marty Moyer, has recently been promoted to the position of store manager at
a large, flagship store in Columbia, South Carolina. Competitive positioning of the
supermarket chain’s service package has just been revised, and the store has recently
adopted a 24-hour-a-day, 7-days-a-week open-door policy. The problem facing Marty
is to develop a work schedule for the stocking/bagging employees that will satisfy
competitive priorities and, at the same time, control costs.
B. Purpose
This case is designed to expose students to issues pertaining to scheduling workers in
a service environment where demand typically exhibits large fluctuations over very
short periods of time within a day or even within a shift.
Specific issues the case is meant to illustrate include:
❑ Adjusting capacity to meet demand, given workforce scheduling constraints
concerning:
—Organizational policies
—Legal restrictions
—Behavioral/psychological factors
—Minimizing cost
❑ Seeing how the scheduling of workers impacts the ability of organizations to meet
competitive priorities.
❑ Receiving enough information concerning demand, work policies, and costs to
enable students to develop a work schedule.
❑ Rotating versus fixed work schedules within the context of meeting behavioral
needs of the younger workers specifically.
❑ Appropriate measures for determining the effectiveness of the resulting schedule
with respect to meeting the competitive priorities of Food King.
C. Analysis
The analysis should begin with a discussion of the target market and the
accompanying shopper priorities. The issue here is translating customer requirements
into organizational competitive priorities. Customer requirements given in the case
were:
* This case was prepared by Dr. Brooke Saladin, Wake Forest University, as a basis for classroom
discussion.
⚫ PART 2 ⚫ Managing Customer Demand
10–40
❑ Timely service
❑ Reasonable prices
These requirements can be associated with the following competitive priorities:
1. Quality: Food King must maintain the quality of the service delivery package,
which includes both high-performance design and service delivery process
factors. Facilities that are easy to keep clean, don’t look messy and cluttered, and
4. Low Cost: The grocery store industry traditionally operates on very low profit
margins. Customers may be willing to pay some premium for higher quality and
faster service, but the issue is how much? This is one of the key trade-offs facing
Food King. Stockers and baggers can be added to help meet each of the other
competitive priorities, but then overall costs would rise.
Following a discussion of the trade-offs present in establishing the competitive
priorities for Food King, students’ attention should be directed to the development of
a work schedule for stockers/baggers. This note contains one possible solution in
Exhibits TN.1 through TN.7. Also attached is Appendix A, a student solution that
contains two methods of approaching the schedule.
The solution in the teaching note is based on the following assumptions:
1. Full-time employees were assigned shifts of eight consecutive hours, each with
two consecutive days off.
6. Utilize part-time employees to avoid excess capacity and to lower labor costs.
Operations Planning and Scheduling ⚫ CHAPTER 10 ⚫
10–41
The solution presented in the exhibits was developed using a modified version of
the “minimize total slack capacity” approach outlined in Chapter 14, “Operations
Planning and Scheduling.” The differences are that two consecutive four-hour blocks
were used to identify the minimum requirement pairs. The work schedule for full-
Exhibit TN.6 represents the remaining requirements after the 22 full-time
employees had been scheduled. In order to cover these requirements, 12 part-time
employees were scheduled. These workers represent 9.4 20-hour per week part-time
employee equivalents. The part-time schedule is provided in Exhibit TN.7. The total
costs of this schedule in labor cost dollars is:
Of course there are many other combinations of part-time workers available. The
configuration of part-time workers will change depending on the rules of thumb used
D. Recommendations
Once a schedule similar to the one provided in this note is developed, you can readily
test its ability to cover expected demand and calculate the labor costs involved. There
are no specified legal restrictions presented in this case. For example, most states
have restrictions against high school students working after certain evening hours. In
addition, there are organizational policies to consider with respect to limiting part-
time employees to 50 percent of the hours of full-time employees and keeping part-
time hours to 20 or fewer per employee. The solution presented has 22 full-time and
12 part-time employees scheduled, but some part-time employees work fewer than 20
hours per week. The effective full-time equivalent number of part-time employees is
actually 9.4, well below the 50 percent target.
When students are convinced that the schedule meets demand, costs, and organ-
izational guidelines, attention usually shifts toward the behavioral and psychological
⚫ PART 2 ⚫ Managing Customer Demand
10–42
factors associated with the schedule. Therefore, additional recommendations will
usually focus on the following issues:
❑ Should employees be rotated through the schedule in some manner to provide
more fairness in days off and shifts?
❑ Are there other ways to assign individual employees to work schedules?
Seniority? Performance ratings?
❑ Can employees swap days and shift times on a limited basis?
❑ What would be the impact of utilizing extended shift times, such as 10 hours?
❑ Having weekends off is usually a consideration brought up by the students. In the
schedule provided, only three full-time employees have the whole weekend off,
and they work the 12:00 A.M. to 8:00 A.M. shifts.
E. Teaching Suggestions
This is a pretty straightforward case that should be assigned as an overnight exercise.
The primary focus, of course, is to challenge the student to adapt scheduling
methodologies presented in the text in order to develop an acceptable schedule. The
discussion should be sectioned into three stages. First, discuss the requirements being
placed on the operating system, and make sure the students see how these customer
requirements translate into competitive priorities. Second, go right into the
development of a work schedule. Ask students to share their schedules and explain
the assumptions and rules of thumb they used to arrive at their schedule. It is helpful
if you can have at least two schedules presented so comparisons can be made and
students can discuss the trade-offs made.
Finally, focus the students’ attention on evaluating the schedule with respect to
organizational policies and the behavioral implications of the schedule. It is easy to
use an hour to discuss the case issues completely. I try to allocate 15 minutes to
discuss the requirements and competitive priorities; 30 minutes to go over at least two
different schedules; and 15 minutes to evaluate the schedules and discuss
recommendations beyond the specific worker configuration. It is usually a good idea
to have the solutions in this Teaching Note ready if students are reluctant to offer
their solutions. However, make sure that they understand that this is not necessarily
“the best” solution, just a feasible one. The best depends on the interpretation and
prioritization of the trade-offs that are present.
Operations Planning and Scheduling ⚫ CHAPTER 10 ⚫
10–43
Full-Time Work Schedule
Shift Time
Employee
M
T
W
Th
F
S
Su
8A–4P
1
off
X
X
X
X
X
Off
8A–4P
2
X
X
off
off
X
X
X
8A–4P
3
off
X
X
X
X
X
Off
8A–4P
4
X
X
off
off
X
X
X
8A–4P
5
off
X
X
X
X
X
Off
8A–4P
6
X
X
off
off
X
X
X
8A–4P
7
off
X
X
X
X
X
Off
8A–4P
8
X
X
off
off
X
X
X
4P–12A
9
X
X
off
off
X
X
X
4P–12A
10
off
X
X
X
X
X
Off
4P–12A
11
off
off
X
X
X
X
X
4P–12A
12
X
X
off
off
X
X
X
4P–12A
13
off
X
X
X
X
X
Off
4P–12A
14
X
off
off
X
X
X
X
12A–8A
15
X
X
X
X
X
off
Off
12A–8A
16
X
off
off
X
X
X
X
12A–8A
17
X
X
X
X
X
off
Off
12A–8A
18
X
off
off
X
X
X
X
12A–8A
19
X
X
X
off
off
X
X
12A–8A
20
X
X
X
X
X
off
Off
12P–8p
21
X
off
off
X
X
X
X
12P–8P
22
X
X
off
off
X
X
X
⚫ PART 2 ⚫ Managing Customer Demand
10–44
Full-Time 8:00 A.M.–4:00 P.M. Requirements
M
T
W
TH
F
S
Su
8A–12P
6
8
5
5
8
15
4
12P–4P
6
8
5
5
10
15
6
8A–12P
6
7
4
4
7
14
4
12P–4P
6
7
4
4
9
14
6
8A–12P
5
6
4
4
6
13
3
12P–4P
5
6
4
4
8
13
5
8A–12P
5
5
3
3
5
12
3
12P–4P
5
5
3
3
7
12
5
8A–12P
4
4
3
3
4
11
2
12P–4P
4
4
3
3
6
11
4
8A–12P
4
3
2
2
3
10
2
12P–4P
4
3
2
2
5
10
4
8A–12P
3
2
2
2
2
9
1
12P–4P
3
2
2
2
4
9
3
8A–12P
3
1
1
1
1
8
1
12P–4P
3
1
1
1
3
8
3
8A–12P
2
0
1
1
0
7
0
12P–4P
2
0
1
1
2
7
2
Operations Planning and Scheduling ⚫ CHAPTER 10 ⚫
10–45
Full-Time 4:00 P.M.–12:00 A.M. Requirements
M
T
W
Th
F
S
Su
4P–
8P
5
6
5
5
15
15
6
8P–
12A
4
4
4
4
8
6
4
4P–
8P
4
5
5
5
14
14
5
8P–
12A
3
3
4
4
7
5
3
4P–
8P
4
4
4
4
13
13
5
8P–
12A
3
2
3
3
6
4
3
4P–
8P
4
4
3
3
12
12
4
8P–
12A
3
2
2
2
5
3
2
4P–
8P
3
3
3
3
11
11
3
8P–
12A
2
1
2
2
4
2
1
4P–
8P
3
2
2
2
10
10
3
8P–
12A
2
0
1
1
3
1
1
4P–
8P
2
2
2
1
9
9
2
8P–
12A
1
0
1
0
2
0
0
⚫ PART 2 ⚫ Managing Customer Demand
10–46
Full-Time 12:00 A.M.–8:00 A.M. Requirements
M
T
W
Th
F
S
Su
12A–
4A
4
4
4
4
5
4
4
4A–
8A
8
4
4
8
5
4
4
12A–
4A
3
3
3
3
4
4
4
4A–
8A
7
3
3
7
4
4
4
12A–
4A
2
3
3
2
3
3
3
4A–
8A
6
3
3
6
3
3
3
12A–
4A
1
2
2
1
2
3
3
4A–
8A
5
2
2
5
2
3
3
12A–
4A
0
2
2
0
1
2
2
4A–
8A
4
2
2
4
1
2
2
12A–
4A
0
1
1
0
1
1
1
4A–
8A
3
1
1
4
1
1
1
12A–
4A
0
0
0
0
0
1
1
4A–
8A
2
0
0
3
0
1
1
Operations Planning and Scheduling ⚫ CHAPTER 10 ⚫
10–47
Full-Time 12:00 A.M.–8:00 A.M. Requirements
M
T
W
Th
F
S
Su
12P–
4P*
2
0
1
1
2
7
2
4P–
8P**
2
2
2
1
9
9
2
12P–
4P
1
0
1
0
1
6
1
4P–
8P
1
2
2
0
8
8
1
12P–
4P
0
0
1
0
0
5
0
4P–
8P
0
1
2
0
7
7
0
⚫ PART 2 ⚫ Managing Customer Demand
10–48
Remaining Part-Time Employee Requirements
M
T
W
Th
F
S
Su
8A–
12P
2
0
1
1
0
7
0
12P–
4P
0
0
1
0
0
5
0
4P–
8P
0
1
2
0
7
7
0
8P–
12A
1
0
1
0
2
0
0
12A–
4A
0
0
0
0
0
1
1
4A–
8A
2
0
0
3
0
1
1
Note: This matrix represents the requirements that remain after the full-time employees were scheduled. They
are transcribed from the last row of requirements from Exhibits TN.2, TN.3, TN.4, and TN.5.
Part-Time Employee Work Schedule
M
T
W
TH
F
S
SU
PT–1 (20 hr)
8A–12P
8A–12P
8A–12P
8A–4P
PT–2 (20 hr)
4P–8p
4P–8P
4P–12A
4P–8P
PT–3 (20 hr)
8p–12A
8P–12A
4P–12A
4P–8P
PT–4 (20 hr)
4A–8A
12A–8A
12A–8A
PT–5 (20 hr)
4A–12P
4P–8P
8A–4P
PT–6 (20 hr)
4A–8A
4A–8A
4P–8A
8A–4P
PT–7 (20 hr)
12P–4P
4A–8A
4P–8P
12P–8P
PT–8 (16 hrs)
4P–8P
4P–8P
8A–4P
PT–9 (12 hrs)
4P–8P
8A–12P
4P–8P
PT–10 (8 hrs)
8A–12P
4P–8P
PT–11 (8 hrs)
8A–12P
4P–8P
PT–12 (4 hrs)
_____
_____
_____
_____
_____
4P–8P
_____
Total
number of
four-hour
shifts
5
1
5
4
9
21
2
Operations Planning and Scheduling ⚫ CHAPTER 10 ⚫
10–49
APPENDIX A Student Solutions
A. Food King—Scheduling
Two methods were used to determine the schedule. Both methods required the full–
time employees to be given two consecutive days off. In addition, standard start times
with 8-hour shifts were used whenever possible.
❑ Method 1 results are provided as Attachment 1. For this method, workers were
assigned in a way that emphasized three standard shifts: (Tue-Sat at 8 A.M.,
4 P.M., and 12 A.M.). Other shifts were used as required to balance workers.
Additional information concerning trade-offs and priorities:
Options to allow more fairness in the schedule:
❑ Food King should cycle individual worker schedules once a month or so. Workers
should be allowed to swap 4-hour schedule blocks.
⚫ PART 2 ⚫ Managing Customer Demand
10–50
ATTACHMENT 1: FOOD KING Method 1
Stocking/bagging
personnel
required
Mon
Tue
Wed
Thur
Fri
Sat
Sun
Total
8:00 A.M.
6
8
5
5
8
15
4
51
12:00 P.M.
6
8
5
5
10
15
6
55
4:00 P.M.
5
6
5
5
15
15
6
57
8:00 P.M.
4
4
4
4
8
6
4
34
12:00 A.M.
4
4
4
4
5
4
4
29
4:00 A.M.
8
4
4
8
5
4
4
37
33
34
27
31
51
59
28
263
Full-time
personnel
Mon
Tue
Wed
Thur
Fri
Sat
Sun
Total
8:00 A.M.
4
5
4
5
6
7
4
35
12:00 P.M.
5
7
4
5
9
9
6
45
4:00 P.M.
4
6
4
5
8
8
5
40
8:00 P.M.
3
4
3
4
6
6
3
29
12:00 A.M.
3
4
3
4
4
4
3
25
FT
4:00 A.M.
3
4
4
5
3
4
3
26
emps
22
30
22
28
36
38
24
200
20
Part-time
personnel
Mon
Tue
Wed
Thur
Fri
Sat
Sun
Total
8:00 A.M.
2
3
1
0
2
8
0
16
12:00 P.M.
1
1
1
0
1
6
0
10
4:00 P.M.
1
0
1
0
7
7
1
17
8:00 P.M.
1
0
1
0
2
0
1
5
12:00 A.M.
1
0
1
0
1
0
1
4
PT
4:00 A.M.
5
0
0
3
2
0
1
11
emps
11
4
5
3
15
21
4
63
12.6
Hours\Days
Tu–
Sa
We–
Su
Th–
Mo
Fr–
Tu
Sa–
We
Su–
Th
8:00 A.M.–4:00 P.M.
3
1
1
12:00 P.M.–8:00 P.M.
1
3
4:00 P.M.–12:00 A.M.
3
1
8:00 P.M.–4:00 A.M.
1
1
Full–time
12:00 A.M.–8:00 A.M.
2
1
employees
4:00 A.M.–12:00 A.M.
1
1
20
Operations Planning and Scheduling ⚫ CHAPTER 10 ⚫
10–51
ATTACHMENT 2: FOOD KING Method 2
Stocking/bagging
personnel
required
Mon
Tue
Wed
Thur
Fri
Sat
Sun
Total
8:00 A.M.
6
8
5
5
8
15
4
51
12:00 P.M.
6
8
5
5
10
15
6
55
4:00 P.M.
5
6
5
5
15
15
6
57
8:00 P.M.
4
4
4
4
8
6
4
34
12:00 A.M.
4
4
4
4
5
4
4
29
4:00 A.M.
8
4
4
8
5
4
4
37
33
34
27
31
51
59
28
263
Full-time
personnel
Mon
Tue
Wed
Thur
Fri
Sat
Sun
Total
8:00 A.M.
4
8
4
5
8
8
4
41
12:00 P.M.
5
8
4
5
9
10
5
46
4:00 P.M.
5
6
3
5
8
8
5
40
8:00 P.M.
4
4
2
4
6
6
4
30
12:00 A.M.
4
4
2
3
4
4
4
25
FT
4:00 A.M.
4
4
3
4
5
4
4
28
emps
26
34
18
26
40
40
26
210
21
Part-time
personnel
Mon
Tue
Wed
Thur
Fri
Sat
Sun
Tota
l
8:00 A.M.
2
0
1
0
0
7
0
10
12:00 P.M.
1
0
1
0
1
5
1
9
4:00 P.M.
0
0
2
0
7
7
1
17
8:00 P.M.
0
0
2
0
2
0
0
4
12:00 A.M.
0
0
2
1
1
0
0
4
PT
4:00 A.M.
4
0
1
4
0
0
0
9
emps
7
0
9
5
11
19
2
53
10.6
Hours/Days
Mo–
Fr
Tu–
Sa
We–
Su
Th–
Mo
Fr–
Tu
Sa–
We
Su–
Th
8:00 A.M.–4:00 P.M.
2
1
12:00 P.M.–8:00 P.M
2
1
3
4:00 P.M.–12:00 A.M.
1
1
8:00 P.M.–4:00 A.M.
1
1
2
Full-time
employees
12:00 A.M.–8:00 A.M.
1
21
4:00 A.M.–12:00 A.M.
2
1
2