A lab provides ultrasound service to patients. The service process consists of two steps: 1. Registration. Performed by a receptionist (Salary rate = $25/hr; Process time = 6 minutes/patient) 2. Ultrasound scan. Performed by a technician (Salary rate = $30/hr; Process time 20 minutes/patient) Note that the ultrasound images need to be read by radiologists, but we assume that they have an ample capacity and thus will not model the role in the service process. Currently, the lab has 2 receptionists and 3 technicians. The manager anticipates demand to grow to 14 patients/hr in the near future. Thus, he plans to hire more receptionists and/or technicians to increase the service capacity to at least 14 patients/hr. What would be the extra payroll cost (in dollars per hr)?
A lab provides ultrasound service to patients. The service process consists of two steps: 1. Registration. Performed by a receptionist (Salary rate = $25/hr; Process time = 6 minutes/patient) 2. Ultrasound scan. Performed by a technician (Salary rate = $30/hr; Process time 20 minutes/patient) Note that the ultrasound images need to be read by radiologists, but we assume that they have an ample capacity and thus will not model the role in the service process. Currently, the lab has 2 receptionists and 3 technicians. The manager anticipates demand to grow to 14 patients/hr in the near future. Thus, he plans to hire more receptionists and/or technicians to increase the service capacity to at least 14 patients/hr. What would be the extra payroll cost (in dollars per hr)?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question

Transcribed Image Text:A lab provides ultrasound service to patients. The service process consists of two
steps:
1. Registration. Performed by a receptionist (Salary rate = $25/hr; Process time
= 6 minutes/patient)
2. Ultrasound scan. Performed by a technician (Salary rate = $30/hr; Process
time = 20 minutes/patient)
Note that the ultrasound images need to be read by radiologists, but we assume that
they have an ample capacity and thus will not model the role in the service process.
Currently, the lab has 2 receptionists and 3 technicians. The manager anticipates
demand to grow to 14 patients/hr in the near future. Thus, he plans to hire more
receptionists and/or technicians to increase the service capacity to at least 14
patients/hr. What would be the extra payroll cost (in dollars per hr)?
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images

Recommended textbooks for you

Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,

Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education

Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,

Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education


Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning

Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.