Determination of Optimal Size of Casual Workers in a Production Company Using Stochastic Model

Abstract

Many big production companies engage casual workers to work with their regular employees in order to meet their daily labour needs.  The researchers are quite aware that the Nigeria Labour Congress frowns at casualisation of workers which is seen as under-employment and cheating on the part of the people concerned.  Since unemployment and underemployment are parts of the problems confronting Nigeria, there is the need for the issue of workers casualisation to be addressed before the nation can be transformed. This paper therefore attempts to determine the daily optimal number of casual workers that could be engaged by a production company with specific reference to Dangote Cement PLC, Ibese. This is necessary in achieving the national transformation agenda through scientific approach since policy analysis has direct impact on production. This study was done by the use of a stochastic model. In view of this, data were generated, collected and collated from Dangote Cement PLC, Ibese and used to test the validity and applicability of the model.

Keywords: Casual workers, Random numbers, Stochastic, Optimal