A case study of cost-efficient staffing under annualized hours
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We propose a mathematical programming formulation that incorporates annualized hours and shows to be very flexible with regard to modeling various contract types. The objective of our model is to minimize salary cost, thereby covering workforce demand, and using annualized hours. Our model is able to address various business questions regarding tactical workforce planning problems, e.g., with regard to annualized hours, subcontracting, and vacation planning. In a case study for a Dutch hospital two of these business questions are addressed, and we demonstrate that applying annualized hours potentially saves up to 5.2% in personnel wages annually.
KeywordsAnnualized hours Mixed-integer linear programming Contract-mix and skill-mix planning Staff capacity allocation Workforce capacity allocation
The authors thank the University Hospital St. Radboud Nijmegen, the Netherlands for offering the opportunity to perform this research, and their assistance and feedback on the modeling.
This research is supported by the Dutch Technology Foundation STW, applied science division of NWO and the Technology Program of the Ministry of Economic Affairs.
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