Experiencing cutbacks in funding and revenues

Assignment Help Operation Management

Reference no: EM131129179

Hargrove Hospital is experiencing cutbacks in funding and revenues. One suggestion for saving money is to eliminate one of its two birthing stations. The hospital estimates that this cut will save $25,000 per year in direct expenses. The hospital is also considering adding additional birthing stations at an annual cost of $30,000 per station because when all birthing stations are occupied, women in labor are sent to one of the hospital’s surgery rooms. The estimated cost per hour for the use of a surgery room for maternity purposes is $400 (due to the need to reschedule surgeries). Hence, the expense of additional birthing stations may be more than offset by the savings from a decreased use of the hospital’s surgery rooms. Studies have indicated that an average of six women a day go into labor at the hospital and that the average time spent in a birthing station is two hours. Women who need a birthing station arrive at the hospital according to a Poisson process.

1. Determine the optimum number of birthing stations (the number to maximize the hospital's yearly savings compared to the current situation).

2. Compared to the current situation, how much will be saved per year by using the optimum number of birthing stations?

Reference no: EM131129179

Questions Cloud

Substitution that a solution of this infinite system : Suppose that f(x, t) is the probability of getting x successes during a time interval of length t when (i) the probability of a success during a very small time interval from t to t + ?t is α · ?t, (ii) the probability of more than one success dur..

Identify the amount that should be transferred out of work : Using the FIFO method, prepare a process cost report for April. Identify the amount that should be transferred out of the Work in Process Inventory account, and state where those dollars should be transferred.

Explain why energy is released when atp is hydrolyzed : Explain why energy is released when ATP is hydrolyzed and why energy is absorbed when ATP is formed from ADP and Pi.

Distribution function of a poisson random variable : This result is important because values of the distribution function of a Poisson random variable may thus be obtained by referring to a table of incomplete gamma functions.

Experiencing cutbacks in funding and revenues : Hargrove Hospital is experiencing cutbacks in funding and revenues. One suggestion for saving money is to eliminate one of its two birthing stations. Compared to the current situation, how much will be saved per year by using the optimum number of bi..

Generating function of the poisson distribution : Show that if the limiting conditions n →∞, θ →0, while nθ remains constant, are applied to the momentgenerating function of the binomial distribution, we get the moment-generating function of the Poisson distribution.

How does each provide a framework to align the terminologies : Does your hospital currently use any of the standards outlined by a specific organization? Why? How might standards impact the documentation processes of your hospital? Furthermore, which standards might most apply to you in your work as a nurse?

Moments about the mean of the poisson distribution : for r = 1, 2, 3, .... Also, use this recursion formula and the fact that μ0 = 1 and μ1 = 0 to find μ2,μ3, and μ4, and verify the formula given for α3 in Exercise 35.

User Account

All Pages