There are many organizations or industries in which there may be fluctuating demand for manpower. Sometimes it may be static also. In view of the fluctuations in demand for manpower, recruitment is done frequently followed by training. This is called stage 1. Sometimes there may be delay in the process of recruitment in stage 1 and hence shortage of manpower arises, in stage 2, which involves use of manpower. The breakdown of activities at stage 2 due to shortage of manpower is very costly. Hence a reserve of manpower or inventory is suggested. In this paper the optimal size of manpower is derived assuming different costs involved and the distributions of the random variables. Numerical illustration is also provided.
Recruitment, Breakdown, Manpower Reserve
