As a member of the heterogeneous salesforce, every salesperson’s demand and sales are both various. A payment may not be satisfactory for all salesmen. Therefore, this paper deals with the problem how a firm designs a compensation plan in order to meet every salesperson’s demand.
We set up a mathematical model, according to the interaction of the distribution of different salesmen, their demand, and a firm’s profits. The model is solved with the optimal control theory and the optimal compensation for heterogeneous salesforce can thus be found. Moreover, we obtain several interesting characteristics from the optimal solution.
Journal of information & optimization sciences 16(1), pp.101-111