Effects of restricting wastage to only staff who reach the peak of their career in manpower planning models

Wastage is the exit of employees from an organization which may be voluntary or involuntary. The concept of wastage in manpower planning models in literature is being expanded in this study by restricting the concept of wastage to only employees who got to the highest rank in their careers before their exit from service. A new approach which involves backward recursive procedure in dynamic programming (DP) is formulated and applied to evaluate the wages of retirees who exit from service. The athematical analysis of the proposed model indicates that the wages of employees who got to the highest rank in their profession earn higher wages compare to other employees recruited to replace retirees in all the periods of manpower cost being considered.