Effort Analysis Using Collective Stochastic Model

In this paper we consider the problem of work order (WO) arrivals and time spent on work orders in service delivery to derive the asymptotic behavior of a strategic outsourcing contract. We model both the work order arrivals and time spent on the work orders, also known as effort, as a collective stochastic process. We use the resulting model to derive the probability that a contract will exceed the allocated budget for resolving work orders, and also to calculate the staffing requirement for resolving work orders.