Planning annualised hours with a finite set of weekly working hours and joint holidays

Abstract

Annualising working hours (i.e., the possibility of irregularly distributing a total number of working hours over a year) permits companies to adapt capacity to fluctuations in demand, thus reducing overtime, temporary workers and inventory costs. Since annual hours can lead to a worsening of the staff’s working conditions, many laws and collective bargaining agreements contain constraints that affect the distribution of working time. This paper proposes a MILP model to solve an annualised working hours planning problem in which workers are considered to be cross-trained, and in which the number of weekly working hours must belong to a previously agreed finite set. A computational experiment demonstrates the effectiveness of the model.