A feedback control approach to solve manpower planning problem under uncertainty demand

We consider a manpower planning problem (MPP) with single type of job under uncertainty demands over a long planning horizon where dynamic demands for manpower must be fulfilled by allocating enough number of employees. Taking into account the recruitment/dismissal factors and setup cost and considering staff substitution, we formulate the problem as a multi-period stochastic decision model. A mean value model approach is developed to solve this kind of stochastic problem through a feedback control scheme. Then an example is presented to illustrate the validity of the approach.