Optimal recruitment in a Markovian manponver planning system

Abstract

An important decision problem in manpower planning concerns the determination of the number of new recruits who should enter an organization in a given period. This decision must of course be based on various cost factors involved and the manpower requirements of the organization. Another important issue is that the decision maker should also consider the prevailing economic conditions. We propose an LP formulation to minimize the average cost per period in a Markovian model that also incorporates the effect of economic variations.