Stochastic Models in Graded Manpower systems

Modeling is a simplified representation of reality. Deterministic models provide exact or consistent prediction for every variable. Stochastic modeling concerns the use of probability to model real-world situations in which uncertainty is present. Since uncertainty is pervasive, this means that the tools of this stochastic process can potentially prove useful in almost all facets of professional life and sometimes even in personal life as in gambling, personal finances economic forecasting, product demand, call center provisioning, product reliability and warranty analysis. Planning is an inevitable phenomenon in everyday life and stochastic modeling can help to maximize use of available manpower, finance and material resources. The Monte Carlo Simulation is an example of a stochastic model used in finance. Stochastic modeling is a practical tool for predicting employer and employee behavior and manpower stocks and flows based on rational assumptions. Models discussed in this book certainly build a strong base for students and researchers from business, industry, computer science, management studies and allied areas who seek the knowledge in applied stochastic processes.