Markov Analysis and Forecasting
The Doortodoor Sports Equipment Company sells sports clothing and equipment for amateur, light sport (running, tennis, walking, swimming, badminton, and golf) enthusiasts. It is the only company in the nation that does this door-to-door, seek- ing to bypass the retail sporting goods store and sell directly to the customer. Its salespeople have sales kits that include both sample products and a full-line cata- log they can use to show the products and discuss them with customers. The sales function is composed of full-time and part-time salespeople (level 1), assistant sales managers (level 2), and regional sales managers (level 3).
The company has decided to study the internal movement patterns of people in the sales function, as well as forecast their likely availabilities in future time periods. The results will be used to help identify staffing gaps (surpluses and short- ages) and to develop staffing strategy and plans for future growth.
To do this, the HR department first collected data for 2013 and 2014 to con- struct a transition probability matrix, as well as the number of employees for 2015 in each job category. It then wanted to use the matrix to forecast availabilities for 2016. The following data were gathere
Use these data to answer the following questions: