Allocation of Workers Model by using Optimization Approach

Abstract

In this paper, we develop two models of allocation for permanent, contract and temporary workers in government sector. Compare to existing allocation worker methods, this paper use linear programming approach to determine the optimal number of workers that should be hired. Study shows that the costs to hire contract and temporary workers compared to bring on permanent workers are same or just slightly less. However, in previous research, there is no particular way to determine the quota of workers’ appointment and the current system fully depends on the available vacancies to hire worker. According to this situation, a lot of temporary and contract worker missed to be absorbed into permanent status due to competition with the future permanent worker. The study also took into account contract workers that been converted into permanent status when they are working more than certain period.