Chapter 5: Forecasting and Planning Chern's has never examined its internal labor market. The company asks you to perform a transi- tion analysis for full-time sales associates. It asks you to conduct relevant analyses to describe the internal labor market for its flagship store. Summarize the flagship store's internal labor market and highlight any trends or forecasted annual rates that are averaged over a span of three years. In other words, they are the average rate per year. If Chern's wants to keep its flagship store staffed with 140 full-time sales associates, how many full-time sales associates should it expect to have to hire from outside the company gaps based on the transition probability matrix in Table A-5. The probabilities are based on annually? Traditionally, 25 percent of the store's job applicants for sales associate positions become job candidates, and 20 percent of the job candidates receive job offers, 75 percent of which are accepted. Chern's asks you how many applicants it will need to generate each year to acquire the number of new hires you forecasted. TABLE A-5 The Transition Probability Matrix for Chern's Flagship Store Transition Probabilities Based on the Past Three Years 5 30 Job Category Full-time sales associates (FTSA) Part-time sales associates (PTSA) Department manager (DEP) Buyers (BUY) Merchandising managers (MER) 16 15 Job FTSA PTSA DEP BUY MER Exit Current # of Level (%) (%) (%) (%) (%) (%) Employees 50 15 5 5 20 140 1 30 50 0 5 0 15 2 6 0 75 6 12 20 2 0 0 0 65 7 30 2. 12 0 0 0 80 20 8