Development of an Optimal Replenishment Policy for Human Capital Inventory

A unique approach is developed for evaluating Human Capital (workforce) requirements. With this approach, new ways of measuring personnel availability are proposed and available to ensure that an organization remains ready to provide timely, relevant, and accurate products and services in support of its strategic objectives over its planning horizon. The development of this analysis and methodology was established as an alternative approach to existing studies for determining appropriate hiring and attrition rates and to maintain appropriate personnel levels of effectiveness to support existing and future missions.

The contribution of this research is a prescribed method for the strategic analyst to incorporate a personnel and cost simulation model within the framework of Human Resources Human Capital forecasting which can be used to project personnel requirements and evaluate workforce sustainment, at least cost, through time. This will allow various personnel managers to evaluate multiple resource strategies, present and future, maintaining near “perfect” hiring and attrition policies to support its future Human Capital assets.

Strategic Workforce Planning requires an ongoing analysis in order to evaluate future Human Capital needs and also for providing a path to achieve optimal placement of personnel. In addition to identifying the proper size, location, and specialties of Human Capital, the real underlying challenge is to minimize personnel costs while maintaining balanced levels of Human Capital despite the constantly changing personnel environment.