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Sensitivity Analysis - Sales Time

[ Sensitivity Analysis: Processing Time ]

Sensitivity Analysis: Effects of SalesTIme

Sales Time has a more marked effect on applicants and contracts.  The recruiting model assumes an exponential distribution with a mean of 2 days as necessary to sell a prospect.  Consider, however, the results if a recruiter were to halve the time necessary to sell a prospect.  Instead of an exponential distribution with a mean of 2, the time to sell the prospect would then be distributed exponentially with a mean of 1.  The consequences to recruiter performance are substantial.  Instead of 13 contracts per year and a maximum of 4 applicants during a given time period, a recruiter who manages to sell faster can have as many as six applicants during a given time period and can accumulate 17 contracts during a year.  These results are summarized in in the figure below.

 

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Last modified: October 19, 2000