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Can flexibility be constraining?

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  • Edieal Pinker
  • Hsiao-Hui Lee
  • Oded Berman

Abstract

Five common options for workforce flexibility and their robustness under uncertain demand are investigated. In the first stage, a firm makes optimal staffing decisions according to estimated demand and a given workforce flexibility policy. In the second stage, it reallocates its workforce to react to demand shocks. Numerical results are presented that show that flexibility can lead a firm to staff with too little slack to be flexible to demand shocks, thus leading to higher total costs, i.e., staffing and inventory costs. The forms of flexibility that give robust benefits are identified and an analysis on how different forms of flexibility interact with each other is performed.[Supplemental materials are available for this article. Go to the publisher's online edition of IIE Transactions for the following supplemental resource: Appendix with additional tables of results.]

Suggested Citation

  • Edieal Pinker & Hsiao-Hui Lee & Oded Berman, 2010. "Can flexibility be constraining?," IISE Transactions, Taylor & Francis Journals, vol. 42(1), pages 45-59.
    • Handle: RePEc:taf:uiiexx:v:42:y:2010:i:1:p:45-59
    DOI: 10.1080/07408170903113789
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    Cited by:

    1. Brusco, Michael J., 2015. "A bicriterion algorithm for the allocation of cross-trained workers based on operational and human resource objectives," European Journal of Operational Research, Elsevier, vol. 247(1), pages 46-59.
    2. Gnanlet, Adelina & Gilland, Wendell G., 2014. "Impact of productivity on cross-training configurations and optimal staffing decisions in hospitals," European Journal of Operational Research, Elsevier, vol. 238(1), pages 254-269.

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