Stochastic Analysis of Manpower Levels Affecting Business with the Introduction of Detection Location Phase for Review and Recruitment

Objectives: To apply continuous time Markov chain to manpower planning of a business concern. Methodology: The overall time for the process of recruitment time is then hypo-exponential. The different states have been discussed under the assumption that transitions from adequateness to shortage and shortage to adequateness follow exponential distribution with different parameters. A derivation has been done to give an expression for rate of crisis under steady state (C∞). Steady state cost has also been worked by assigning different costs for the parameters under different conditions. Findings: When the values of parameters increase, the crisis rate also increases. The cost of business is high if business is full and manpower is in shortage. The cost of business is least when the business is nil and manpower is in shortage. Applications/Improvements: The modern trend in any business concern is that the manpower is volatile and the managements are also conscious of maintaining optimum manpower so there is every chance of business facing crises situation is possible. This particular aspect is the crux of the paper and gives the method of determining the rate of crises.