Precena Strategic Partners: Staff Relocation Cost Minimization Harvard Case Solution & Analysis

Problem Diagnosis

Precena Strategic Partners is a Japanese management consultant company and it is seeking to relocate some of its instructors to Singapore for a period of between one and three months. The company wants to conduct its flagship course catering to the Japanese expatriate managers. The management of the company and the CEO, Takahisa Takada, must determine which instructors should be selected so that the relocation costs are minimized while taking into account the number of courses booked over the three future months and t productivity of each instructor. The service department rentals in Singapore are high. An optimization template has been generated and an optimization model has been developed through this template to make the best possible decision.

Problem Solution & Analysis

The optimization model has been developed based on certain parameters. These include the number of the total confirmed course bookings for the next three months, which are October, November and December. Therefore, all the instructors, which are selected, must provide services for all of these booked courses in Singapore or less than that but not greater than the booked courses. The monthly minimum course limits and the monthly maximum course limits have been determined through a formula and the minimum and maximum capacity of each of the instructors. For instructors, H to L they would not be available in certain months due to holidays and maternity leaves. If these are selected then the total costs would be minimized. They would spend less time in Singapore, which would mean less service rental costs for the company.

The excel solver has been used to selected the output cells and all the constraints have been set. The courses taken by any instructor can be minus or plus two above their agreed capacities and this constraint has been incorporated in the model to generate the optimal solution for the relocation of the employees. Another constraint is that the number of courses served by the instructors in each month should be less than or equal to the number of confirmed course bookings. The outputs could be seen in the excel spreadsheet. The average courses by each instructor have been computed based on the number of months they would stay in Singapore. Out of all the 12 instructors, 10 should be selected excluding A and E as they yield less than 1 average courses per month and would thus increase the relocation costs for the company. Moreover, if we assume the service rental cost per month in Singapore would be $ 7000 on average, then the total monthly rental cost would be $161,000 for the company and this is the optimal minimum relocation cost............

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Precena Strategic Partners: Staff Relocation Cost Minimization

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