Planning Annuaulised hours when spike in demand exists

Manpower planning using annualised hours is an effective tool where seasonal demand for staff in industry exists. In annualised hours (AH) workers are contracted to work for a certain number of hours per year. The workers are associated with relative efficiency for different types of tasks. This paper proposes a Mixed Integer linear Programming (MILP) model to solve an annualised working hours planning problem when spike in demand exists. The holiday weeks for the workers are considered as partially individualised. If a worker has been assigned with more than one type of working week in a week, this will be compensated with one or more holiday week. The performance of the model is demonstrated with an example. It can be seen that this type of modelling helps to meet the spikes in demand with less capacity shortage compared with one working week in a week.