On the dynamics of workforce-mix in a manpower system

Abstract

This paper focuses on a manpower system with a fixed number of jobs that uses both permanent and temporary staff. The dynamics of workforce-mix in such a system is modelled as an optimal control problem. The objective is to find the most economical workforce-mix for the manpower system, subject to the fluctuations in workforce caused by wastage and the hiring of temporary staff. The fluctuations in the workforce-mix are modelled using a model similar to the Vidale-Wolfe advertising model. The solution is found by applying Pontryagin's principle, and a number of resulting propositions are presented along with their proofs. A real-life manpower setting is used to illustrate the utility of the model.