Topic 4_ Linear Programming_ Applications In Marketing, Finance, And Operations Management
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School
Ashford University *
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Course
406
Subject
Industrial Engineering
Date
Jan 9, 2024
Type
docx
Pages
5
Uploaded by PinkkFriday08
Objectives:
1.
Explain the relevance and applications of linear optimization models.
2.
Solve marketing, financial, and operations management linear optimization applications
using the Excel solver.
DQ1
Assessment Description
Describe workforce scheduling, blending, and logistics problems facing your current
organization or industry. What is being optimized in each of your examples and why? Which
linear optimization techniques could be applied to the criteria you identified? Support your
response with rationale from the readings.
DQ2
Assessment Description
Discuss how your organization could use an operations management linear programming
application to solve a problem or improve a business process.
In most organizations, linear programming can be used to identify better ways to
increase revenues and reduces avoidable operational cost. It helps businesses to
determine solutions necessary for the business problem affecting their operations,
define problems that may change the ultimate result, and help to know a response that
delivers the results they seek. In healthcare planning, Linear programming methods are
normally helpful in solving problems related to various factors. Refocusing on the
following factors may assist in tuning this method.
●
Adhering to the operating budget, financial goals, and objectives
with economic and efficient performance
●
Establishing policies and procedures that support high-quality
healthcare service, in partnership with hospital management,
medical teams and the surrounding community
●
Managing a team of healthcare professionals
●
Influencing strategic decisions related to hospital functions
In recent years, the role of operations management has shifted due to
mounting complexity in this industry, bringing new challenges and benefits to
the role.
Patient Focus-All the emphasis on cost reduction can put a strain on the
services and quality provided to patients, particularly if poorly managed
budgets hamper technology and equipment purchases. The operations
manager can help oversee costs and ensure service levels are met. And,
when operations managers transform processes, they lead to better outcomes
for patients, from reduced wait times to better-trained staff to improved overall
processes.
Most businesses may find better methods to boost sales and save
unnecessary operating costs by using linear programming. It assists
companies in identifying the solutions required for the operational issues
impacting them, defining issues that might alter the outcome, and
identifying the best course of action. Linear programming techniques are
often useful in healthcare planning to solve issues relating to numerous
elements. The following elements should be reemphasized in order to fine-
tune this approach. -Performing with economic and efficient performance
while adhering to the operational budget, financial goals, and objectives.
-Creating policies and practices that promote high-quality healthcare
services in collaboration with hospital administration, medical staff, and the
local community. -Supervising a group of devoted, trained healthcare
professionals
-Impacting strategic choices pertaining to health department operations.
Due to the growing complexity of this business in recent years, the function
of operations management has changed, bringing with it new problems and
advantages. The above-performed programing techniques could enhance
two important area within my organization: Patient Focus: If resources are
mismanaged, it may be difficult to offer patients with the services and
quality they need. This is especially true if technology and equipment
acquisitions are hampered. The operations manager may assist with cost
management and guarantee that service levels are reached. Additionally,
when operations managers make changes to processes, patients benefit
from shorter wait times, better-trained employees, and enhanced overall
procedures. Data: Because of technology, businesses in all sectors may now
gather a wealth of data that can help guide their business decisions. The
widespread use of electronic health records (EHRs) in recent years has
made it possible to better coordinate treatment and give medical
professionals a real-time, up-to-date picture of their patients' health.
While the following might be useful, operations managers must make sure
their companies are set up to not just gather data but also use it to produce
insightful knowledge that can be put to use. Operations managers may have
a greater understanding of the patient experience, hospital capacity, how
people move through the system, and how the system is used as a whole
when they can make use of their data.
DQ1
Happy Midterms!
The goal of optimization is frequently to provide patients with high-quality treatment while
maximizing resource use (Anderson et al., 2016). Healthcare businesses have the
challenging issue of arranging staff schedules to suit patient demands, legal requirements,
and employee preferences. In addition to considering staff preferences and legal
obligations, the objective is to ensure there is always enough personnel on duty to satisfy
patient demands. To balance workload, staff preferences, and labor law compliance, linear
programming techniques can be used to successfully manage the complexity of nurse and
physician scheduling. By using linear optimization, healthcare institutions may design
schedules that maximize resource allocation, and decrease overtime, and staffing gaps,
thereby raising the standard of care for all patients(Ala et al., 2021).
Blending challenges in the context of healthcare might relate to the best distribution of
resources (such as personnel, tools, and space) among various services or departments.
According to patient demand, staff skill levels, and other criteria, a hospital may need to
choose the best way to distribute its nursing staff across various departments (such as
emergency, surgery, and pediatrics) For healthcare firms to maintain a streamlined supply
chain and patient transportation services, effective logistics management is essential.
Organizations may use linear programming and network optimization approaches to make
data-driven choices about supply chain logistics(Ala et al., 2021).
In conclusion, linear optimization methods provide beneficial answers to operational issues
in the healthcare industry, such as labor scheduling, blending, and logistics. Healthcare
companies may make educated choices between resource optimization and patient care
quality by defining these problems with decision variables, constraints, and objective
functions.
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Reference:
Ala, A., Alsaadi, F. E., Ahmadi, M., & Mirjalili, S. (2021). Optimization of an appointment
scheduling problem for healthcare systems based on the quality of fairness service using
whale optimization algorithm and NSGA-II.
Scientific Reports
,
11
(1).
https://doi.org/10.1038/s41598-021-98851-7
Anderson, D. R., Sweeney, D. J., Williams, T. A., Camm, J. D., Cochran, J. L., Fry, M. J., &
Ohlmann, J. W. (2016).
Quantitative methods for business with CengageNOW
(13th ed.).
Boston, MA: Cengage Learning. ISBN-13: 9781305799257
DQ2
Kilgore’s Deli is a small delicatessen located near a major university. Kilgore’s does a large walk-in
carry-out lunch business. The deli offers two luncheon chili specials, Wimpy and Dial 911. At the
beginning of the day, Kilgore needs to decide how much of each special to make (he always sells out of
whatever he makes). The profit on one serving of Wimpy is $0.46, on one serving of Dial 911, $0.59.
Each serving of Wimpy requires 0.26 pound of beef, 0.26 cup of onions, and 6 ounces of Kilgore’s
special sauce. Each serving of Dial 911 requires 0.26 pound of beef, 0.41 cup of onions, 3 ounces of
Kilgore’s special sauce, and 6 ounces of hot sauce. Today, Kilgore has 21 pounds of beef, 16 cups of
onions, 89 ounces of Kilgore’s special sauce, and 61 ounces of hot sauce on hand.
If required, round your answers to three decimal places. For subtractive or negative numbers use a
minus sign even if there is a + sign before the blank. (Example: -300)
The complete linear program is
Max
fill in the blank 1
BR
+
fill in the blank 2
BD
+
fill in the blank 3
CR
+
fill in the blank 4
CD
s.t.
fill in the blank 5
BR
+
fill in the blank 6
CR
=
fill in the
blank 7
fill in the blank 8
BD
+
fill in the blank 9
CD
=
fill in the
blank 10
fill in the blank
11
fill in the blank
12
=
fill in the
blank 13
BR
CR
fill in the blank
14
BD
+
fill in the blank
15
CD
=
fill in the
blank 16
BR, BD, CR, CD ≥ 0
What is the contribution to profit?
Optimal solution:
BR =
fill in the blank 17
BD =
fill in the blank 18
CR =
fill in the blank 19
CD =
fill in the blank 20
If required, round your answer to two decimal places.
Value of the optimal solution = $
fill in the blank 21