MBA 643-1

3

MBA643-1

Summer2 2015

Problem-SolvingSkills Assignment Two

HospitalExpansion Problem

  1. Medical beds and Surgical beds that should be added to maximize the total revenue

Solution

Objective:To maximize revenue

  • Medical : $2280 X (365days/8days) = $104025

  • Surgical : $1515 X (365days/8days) = $110595

Variables:

  • Medical

  • Surgical

Constraints:

  1. Bed :1Medical + 1Surgical ≤ 90

  1. Lab Test : 3.1Medical X (365days/8days) = 141.438

:2.6Medical X (365days/5days) = 189.80

:14.438M + 189.80S ≤ 15000

  1. Operating : 0Medical X (365days/8days) = 0

:1Surgical X (365days/5days) = 73

:0Medical + 73Surgical ≤ 2800

  1. X-ray : 1Medical X (365days/8days) = 45.625

:2Surgical X (365days/5days) =146

:45.625M + 146S ≤ 7000

Data

Solution

Inorder to maxized revenues, 61 medical beds and 29 surgical bedsshould be added.The revenue generater per year is $9,551,659

Report

Inexpanding the hospital by 90 beds, the total revenue will bemaximized to $9551659. Currently, there are 46 medical patients and73 surgical patients each year. By adding 90 beds, 61 beds would beadded to medical and remaining 29 to surgical. From the resultsobtained, beds are now fully utilized with no any empty bed. Theacquisition of more beds will result to an increase in revenue. Thelaboratories have 876 spaces available for use when need though theyare not used to capacity. This implies the possibilities ofperforming more lab tests in a year. The X-ray facilities do not havea slack meaning that there are being used to maximum. This impliesthe need to acquire more x-ray facilities when needed. The resultsshow that operating room has not been fully utilized. There areunused 696 operating rooms.