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Valley View Hospital faces somewhat seasonal demand. Patients defer elective surgery in the summer and in the holiday season at the end of the year. As a result, the
The hospital uses regular nurses, part-time nurses (when the hospital can get them), and contract nurses (who are not employees). Contract nurses work a number of hours which varies depending on their contract established with the hospital. Regular nurses are paid a sum of $15,500 per quarter for 60 days of work; part-time nurses are paid $6500 per quarter for 30 days of work. Contract nurses get an average of $17,200 per quarter for 60 days of work. It costs $1000 to hire or lay off any of these three types of nurses.
Suppose that regular nurses are set at a level of 800 nurses for the year. Each regular nurse works the equivalent of 60 days per quarter. The remainder of the demand is made up by 50 percent part-time and 50 percent contract nurses on a quarter-by-quarter basis. What is the cost of this plan starting at the beginning of Fall with a level of 800 regular nurses, 200 part-time nurses, and 200 contract nurses? Assume it takes o .8 nurse day to provide around-the clock care for each patient day.
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OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?arrow_forwardScenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?arrow_forwardCoffeeVille’s main source of icome is the lunchtime trade. The cafe sells food and drinks to customers who work nearby. On weekdays, the cafe is staffed by Michael (cashier), Oliver (barista) and Lucy (waiter). Data regarding lunchtime income for the past three months with data from previous year, is presented below. April Lunchtime income this year: $22,000 Lunchtime income previous year: $18,000 Average wait time for a table this year: 15mins. Average wait time for a table previous year: 3mins. May Lunchtime income this year: $23,000 Lunchtime income previous year: $19,000 Average wait time for a table this year: 18mins. Average wait time for a table previous year: 5mins. June Lunchtime income this year: $21000 Lunchtime income previous year: $17,000 Average wait time for a table this year: 16mins. Average wait time for a table previous year: 4mins. CoffeeVille recently conducted its annual customer survey. A sample of the customers feedback received includes: “I use to love coming…arrow_forward
- CoffeeVille’s main source of icome is the lunchtime trade. The cafe sells food and drinks to customers who work nearby. On weekdays, the cafe is staffed by Michael (cashier), Oliver (barista) and Lucy (waiter). Data regarding lunchtime income for the past three months with data from previous year, is presented below. April Lunchtime income this year: $22,000 Lunchtime income previous year: $18,000 Average wait time for a table this year: 15mins. Average wait time for a table previous year: 3mins. May Lunchtime income this year: $23,000 Lunchtime income previous year: $19,000 Average wait time for a table this year: 18mins. Average wait time for a table previous year: 5mins. June Lunchtime income this year: $21000 Lunchtime income previous year: $17,000 Average wait time for a table this year: 16mins. Average wait time for a table previous year: 4mins. CoffeeVille recently conducted its annual customer survey. A sample of the customers feedback received includes: “I use to love coming…arrow_forwardCoffeeVille’s main source of icome is the lunchtime trade. The cafe sells food and drinks to customers who work nearby. On weekdays, the cafe is staffed by Michael (cashier), Oliver (barista) and Lucy (waiter). Data regarding lunchtime income for the past three months with data from previous year, is presented below. April Lunchtime income this year: $22,000 Lunchtime income previous year: $18,000 Average wait time for a table this year: 15mins. Average wait time for a table previous year: 3mins. May Lunchtime income this year: $23,000 Lunchtime income previous year: $19,000 Average wait time for a table this year: 18mins. Average wait time for a table previous year: 5mins. June Lunchtime income this year: $21000 Lunchtime income previous year: $17,000 Average wait time for a table this year: 16mins. Average wait time for a table previous year: 4mins. CoffeeVille recently conducted its annual customer survey. A sample of the customers feedback received includes: “I use to love coming…arrow_forwardCoffeeVille’s main source of icome is the lunchtime trade. The cafe sells food and drinks to customers who work nearby. On weekdays, the cafe is staffed by Michael (cashier), Oliver (barista) and Lucy (waiter). Data regarding lunchtime income for the past three months with data from previous year, is presented below. April Lunchtime income this year: $22,000 Lunchtime income previous year: $18,000 Average wait time for a table this year: 15mins. Average wait time for a table previous year: 3mins. May Lunchtime income this year: $23,000 Lunchtime income previous year: $19,000 Average wait time for a table this year: 18mins. Average wait time for a table previous year: 5mins. June Lunchtime income this year: $21000 Lunchtime income previous year: $17,000 Average wait time for a table this year: 16mins. Average wait time for a table previous year: 4mins. CoffeeVille recently conducted its annual customer survey. A sample of the customers feedback received includes: “I use to love coming…arrow_forward
- CoffeeVille’s main source of icome is the lunchtime trade. The cafe sells food and drinks to customers who work nearby. On weekdays, the cafe is staffed by Michael (cashier), Oliver (barista) and Lucy (waiter). Data regarding lunchtime income for the past three months with data from previous year, is presented below. April Lunchtime income this year: $22,000 Lunchtime income previous year: $18,000 Average wait time for a table this year: 15mins. Average wait time for a table previous year: 3mins. May Lunchtime income this year: $23,000 Lunchtime income previous year: $19,000 Average wait time for a table this year: 18mins. Average wait time for a table previous year: 5mins. June Lunchtime income this year: $21000 Lunchtime income previous year: $17,000 Average wait time for a table this year: 16mins. Average wait time for a table previous year: 4mins. CoffeeVille recently conducted its annual customer survey. A sample of the customers feedback received includes: “I use to love coming…arrow_forwardCoffeeVille’s main source of icome is the lunchtime trade. The cafe sells food and drinks to customers who work nearby. On weekdays, the cafe is staffed by Michael (cashier), Oliver (barista) and Lucy (waiter). Data regarding lunchtime income for the past three months with data from previous year, is presented below. April Lunchtime income this year: $22,000 Lunchtime income previous year: $18,000 Average wait time for a table this year: 15mins. Average wait time for a table previous year: 3mins. May Lunchtime income this year: $23,000 Lunchtime income previous year: $19,000 Average wait time for a table this year: 18mins. Average wait time for a table previous year: 5mins. June Lunchtime income this year: $21000 Lunchtime income previous year: $17,000 Average wait time for a table this year: 16mins. Average wait time for a table previous year: 4mins. CoffeeVille recently conducted its annual customer survey. A sample of the customers feedback received includes: “I use to love coming…arrow_forwardFeVer Beverages is a typical coffee shop that operates at Batangas. Recently, the general manager is facing a challenge about not meeting their target lead time of serving the hot coffee of 15 minutes. The lead time starts from order taking until order serving. The staffing model of the shop has one cashier, one barista and a guard. The number of staff, equipment, and raw materials have been found sufficient. Based on the initial data analysis, the volume of customers has been stable. Because there is a need for the lead time to improve as to retain its customers and to even grow, a problem-solving effort has been started using the Lean Six Sigma DMAIC approach. Using the FEVER Beverages, you should create your own Project Charter and SIPOC Diagram.arrow_forward
- The call centre operates eight hours a day (0900-1700) five days a week and is closed on weekends. Call volumes and demand fluctuate, but there is one noticeable peak period between mid October and January inclusive (15 weeks). Records show that the average call numbers during the off-peak period is 250 calls per day, whilst on peak days call numbers average 608 calls per day. The call centre is staffed by a team of 3 permanent staff members. Full time staff can handle up to a maximum of 12 calls per hour each and it has been shown that the full time staff can cope with all the calls during off-peak periods. Temporary staff are engaged for the peak period and, generally, can answer 8 calls per hour. Temporary staff, sourced from a local recruitment agency cost £76.75 per 8 hour day shift inclusive of all agency fees. A specialist IT company has proposed installing an enhanced call handling system which, it is claimed, will increase productivity enabling permanent staff to…arrow_forwardUsing the accompanying log-log graph, answer the following questions: What are the implications for management if it has forecast its cost on the optimum line? What could be causing the fluctuations above the optimum line? If management forecast the tenth unit on the optimum line, what was that forecast in hours? If management built the tenth unit as indicated by the actual line, how many hours did it take?arrow_forwardThe table below shows the time stamps of 10 customers who visited a local bank branch from 9:00 a.m. to 9:45 a.m. What is the flow time of customers? Customer 1 2 3 4 5 6 7 8 9 10 Time in 9:2 9:5 9:6 9:8 9:8 9:10 9:12 9:15 9:18 9:19 Time out 9:7 9:10 9:17 9:23 9:36 9:21 9:41 9:41 9:28 9:42 Instruction: Round your answer to 1 decimal place. Flow time of customers 3.5 minutesarrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning