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SCHEDULING FLEXIBILITY IN THE SERVICE SECTOR: A POSTAL CASE STUDY
Author(s) -
MALHOTRA MANOJ K.,
RITZMAN LARRY P.
Publication year - 1994
Publication title -
production and operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.279
H-Index - 110
eISSN - 1937-5956
pISSN - 1059-1478
DOI - 10.1111/j.1937-5956.1994.tb00113.x
Subject(s) - scheduling (production processes) , computer science , workforce , operations research , flexibility (engineering) , operations management , business , economics , engineering , economic growth , management
This is a case study of workforce scheduling in the U.S. postal system. We use it to analyze the benefits of scheduling flexibility at postal distribution systems, which can come from several sources. We focus on the additional flexibility deriving from increasing the proportion of part‐time employees, as well as from increasing the cross‐training of part‐time employees. These two dimensions of scheduling flexibility are decision points of particular interest to the postal management. We used a large‐scale simulation model of the dynamic functioning of the postal distribution system in conjunction with a staff‐scheduling model to obtain insights into policy issues of interest. Our results show that the operating environment at a distribution station affects cost and customer service performance, and that gains from greater scheduling flexibility are situationally dependent. The benefit of cross‐training part‐time workers is modest over the range of levels considered realistic for distribution stations. Our overall recommendation is for postal managers to increase the proportion of part‐time employees, allowing more efficient matching of resources with the varying demands for mail delivery on different routes. For the range of conditions we modeled, cost reductions from more part‐time workers average over six percent when capacity utilization is low. Customer service improvements are even larger, and range between 20 and 43% when capacity utilization is high. Improvements at the upper end of the range are achieved when demand variability is also at its highest.