Optimal Wage Rates and Force Composition in Military Manpower Planning

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.