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Optimal Wage Rates and Force Composition in Military Manpower Planning

D. L. Jaquette and G. R. Nelson
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D. L. Jaquette: The RAND Corp., Santa Monica
G. R. Nelson: The RAND Corp., Santa Monica

Management Science, 1976, vol. 23, issue 3, 257-266

Abstract: A mathematical model of a military manpower system is presented which seeks to determine the optimal steady state wage rate and force distribution by length of service. Accessions and retention are the transition parameters of a steady state manpower model and these are assumed to be a function of wages. A productivity function is introduced to measure effectiveness of each force structure. Gradient search is used to find the compensation plan that will produce a long-run force with maximum effectiveness within a given limited annual budget.

Date: 1976
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