need a question and a re-write Supply chain management

Case Study: Shouldice Hospital-A Cut Above

1. How well is the hospital currently utilizing its beds?

90 beds x 7 days a week= 630 available beds

30 patients x 3 days x 5 days a week= 450 utilized beds

450/630 = 71.43%

71.43% of the hospital’s beds are being utilized.

2. Develop a similar table to show the effects of adding operations on Saturday. (Assume that 30 operations would still be performed each day.) How would this affect the utilization of the bed capacity? Is this capacity sufficient for the additional patients?

	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday	Sunday
Monday	30	30	30
Tuesday		30	30	30
Wednesday			30	30	30
Thursday				30	30	30
Friday
Saturday	30					30	30
Sunday	30	30					30
Total	90	90	90	90	60	60	60

90 beds x 7 days a week= 630 available beds

30 patients x 3 days x 6 days a week= 540 utilized beds

630/540 = 85.71%

85.71% of the hospital’s beds are being utilized if you add operations on Saturday. The hospital’s capacity is sufficient to accommodate the additional patients.

3. Now look at the effect of increasing the number of beds by 50%. How many operations could the hospital perform per day before running out of bed capacity? (Assume operations are performed five days per week, with the same number performed on each day.) How well would the new resources be utilized relative to the current operation? Could the hospital really perform this many operations? Why? (Hint: Look at the capacity of the 12 surgeons and the five operating rooms.)

If you increase the number of beds by 50%, 90 beds will turn into 135 beds available daily. Shouldice hospital can perform 45 operations per day before running out of bed capacity. The 50% increase in beds would mean that 45 surgeries are needed Monday, Tuesday, Wednesday and Thursday to fully utilize facilities 4 days a week. If 30 operations are performed each day in 5 rooms, then 6 are performed in each room. In order to perform 45 operations each day the rooms will need to be occupied 9 hours a day or more rooms will beed to be added. Shouldice will need more operating rooms to perform this many operations.

4. Although financial data are sketchy, an estimate from a construction company indicates that adding bed capacity would cost about $100,000 per bed. In addition, the rate charged for the hernia surgery varies between about $900 and $2,000 (U.S. dollars), with an average rate of $1,300 per operation. The surgeons are paid a flat $600 per operation. Due to all the uncertainties in government health care legislation, Shouldice would like to justify any expansion within a five-year time period. How would you do that?