Optimizing Human Resources in the Supply Chain Management: A Mathematical Modeling Perspective

Abstract

This chapter presents an integrated approach to workforce optimization by combining Supply Chain Management (SCM), Human Resource Management (HRM), and Mathematical Modeling. A Mixed Integer Linear Programming (MILP) model is discussed to minimize labor costs while meeting operational requirements such as skill-based staffing, employee availability, and shift constraints. The model ensures efficient and fair allocation of human resources across multiple shifts and days, aligning workforce capabilities with supply chain demands. A practical case study illustrates the model’s effectiveness, and its broader managerial and operational implications are discussed. This work offers a valuable decision-support tool for organizations aiming to enhance labor efficiency, reduce costs, and foster compliance with HR policies. Future research can extend the model to include uncertainty, employee preferences, and real-time adaptability.