Baton Rouge's Mt. Cedar Hospital is a large, private, 600-bed facility complete with laboratories, operating rooms, and X-ray equipment. In seeking to increase revenues, Mt. Cedar's administration has decided to make a 90-bed addition on a portion of adjacent land currently used for staff parking. The administrators feel that the labs, operating rooms, and X-ray department are not being fully utilized at present and do not need to be expanded to handle additional patients. The addition of 90 beds, however, involves deciding how many beds should be allocated to the medical staff (for medical patients) and how many to the surgical staff (for surgical patients). The hospital's accounting and medical records departments have provided the following pertinent information. The average hospital stay for a medical patient is 8 days, and the average medical patient generates $2,280 in revenues. The average surgical patient is in the hospital 5 days and generates $1,515 in revenues. The laboratory is capable of handling 14,500 tests per year more than it was handling. The average medical patient requires 3.1 lab tests, the average surgical patient 2.6 lab tests. Furthermore, the average medical patient uses 1 X-ray, the average surgical patient 2 X-rays. If the hospital were expanded by 90 beds, the X-ray department could handle up to 7,200 X-rays without significant additional cost. Finally, the administration estimates that up to 2,700 additional operations could be performed in existing operating-room facilities. Medical patients, of course, require no surgery, whereas each surgical patient generally has one surgery performed. Develop LP model and using graphical solution, determine the optimal solution.

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...

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Baton Rouge's Mt. Cedar Hospital is a large, private, 600-bed facility complete with laboratories, operating rooms, and X-ray equipment. In seeking to increase revenues, Mt. Cedar's administration has decided to make a 90-bed addition on a portion of adjacent land currently used for staff parking. The administrators feel that the labs, operating rooms, and X-ray department are not being fully utilized at present and do not need to be expanded to handle additional patients. The addition of 90 beds, however, involves deciding how many beds should be allocated to the medical staff (for medical patients) and how many to the surgical staff (for surgical patients).

The hospital's accounting and medical records departments have provided the following pertinent information. The average hospital stay for a medical patient is 8 days, and the average medical patient generates $2,280
in revenues. The average surgical patient is in the hospital 5 days and generates $1,515 in revenues. The laboratory is capable of handling 14,500 tests per year more than it was handling. The average medical patient requires 3.1 lab tests, the average surgical patient 2.6 lab tests. Furthermore, the average medical patient uses

1 X-ray, the average surgical patient 2 X-rays. If the hospital were expanded by 90 beds, the X-ray department could handle up to 7,200 X-rays without significant additional cost. Finally, the administration estimates that up to

2,700 additional operations could be performed in existing operating-room facilities. Medical patients, of course, require no surgery, whereas each surgical patient generally has one surgery performed.

Develop LP model and using graphical solution, determine the optimal solution.

Decision variables: X1 = number of medical patients

X2 = number of surgical patients