Document Type

Article

Date

2002

Keywords

Labor staffing, Labor scheduling, Absenteeism, Employee flux, Profit-oriented labor scheduling

Language

English

Disciplines

Business Administration, Management, and Operations

Description/Abstract

Most labor staffing and scheduling models presume that all employees scheduled for duty reliably report for work at the beginning of their shift. For industries with even moderate turnover or absenteeism, this assumption may be quite costly. We present a profit-oriented labor scheduling model that accounts for the day-to-day flux of employees and capacity induced by voluntary resignations, new hires, experience curves, and absenteeism. The proposed model also anticipates revenue losses due to reneging by customers whose patience decays exponentially with queue time. Our computational studies suggest that firms with comparatively high transaction volumes, long transaction times, and/or relatively tight profit margins may experience significant benefit from this approach. Compared with conventional labor scheduling models, the proposed method boosts average expected profits by more than 10 percent in certain operating environments.