Background and Theory Behind the Compensation, Accessions, and Personnel Management (CAPM) Model

The Excel-based Compensation, Accessions, and Personnel Management (CAPM) model software package enables analysts to study the potential effects of personnel policy changes on future enlisted inventories in the military services. The Annualized Cost of Leaving (ACOL) and the ACOL 2 models, which are the basis for the adjustment of retention rates in CAPM, are also discussed. The text is meant to improve understanding of some modeling fundamentals and assist in future improvements of the CAPM model.