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City bank has a staff planning policy based on a maximum utilization level for each operation. For example, the allowable utilization for operation A...
City bank has a staff planning policy based on a maximum utilization level for each operation. For example, the allowable utilization for operation A is 50%. If the workload for this operation is expected to increase in the next planning period, clerks will be hired to ensure the utilization to be about 50%. Conversely, if the workload is expected to decline, clerks will be assigned elsewhere as long as the 50% utilization rule is not violated. The manager believes that such a policy will allow the bank to maintain a specified service level (in terms of customer waiting time), which is harder to monitor. An internal study shows that for most operations, there is significant variability in the job arrival pattern as well as the processing times for the jobs.
Does this policy work correctly to achieve the specified service level? Please briefly justify your answer.