Original Scenario

Mon Tues Wed

Monday 30 30 30
Tuesday 30 30
Wednesday 30
Thursday
Friday
Saturday
Sunday 30 30
Total 60 90 90

Upon adding 30 Operations on Saturday

Mon Tues Wed

Monday 30 30 30
Tuesday 30 30
Wednesday 30
Thursday
Friday
Saturday
Sunday 30 30
Total 60 90 90

Upon increasing bed by 50%

Mon Tues Wed

Monday 45 45 45
Tuesday 45 45
Wednesday 45
Thursday
Friday
Saturday
Sunday 45 45
Total 90 135 135

Q 3. b.
Ans. The operation is constraint by the number of operating rooms and the hospital will not be able to perform 45 operat
However, if it is assumed that the hospital can perform 45 operations a day when the capacity is increased by 50%
the bed utilization between the current operation and the operation with 50% increased bed-capacity is identical.

Q 3. c.
Ans. The hospital will not be able to perform 45 operations a day.
The hospital has a total of 12 surgeons who take 1 hour to prepare for and perform each operation.
The first operation start at 7:30 and takes about 1 hour. The surgeons day ends at 4 p.m. Given
these fact, the total number of operations that each surgeon can perform per day is 8. Currently,
 each surgeon performs an average of 2.5 operations a day. If the capacity is increased by 50%
each surgeon will perform an average of 3.75 operations a day, which is a surgeon-hour utilization of
approximately 44%.
However, the hospital only has 5 operating rooms. With each operation taking 1 hour to perform, and
surgeons being available for 8.5 hours a day, the maximum number of operations that can be performed each day
In order to perform 45 operations a day, the hospital will need to add an operating room.

Q 4. d.
Ans. Total Cost of Expansion $4,500,000.00

Revenue from each additional operation $1,300.00

Cost of each additional operation $600.00
Profit from each additional operation $700.00

Total Additional Operations performed per week 75 Assuming 45 operations a day

Additional profit per week $52,500.00
Payback Period in weeks 85.71 wks
Payback Period in years 1.65 yrs

Total Additional Operations performed per week 50 Assuming 40 operations a day

Additional profit per week $35,000.00
Payback Period in weeks 128.57 wks
Payback Period in years 2.47 yrs
 Thurs Fri Sat Sun Per Week
Total Beds 90
30 Total Operations 150
30 30 Total Surgeons 12
30 30 30 Total Bed Capacity (Bed Days) 630
Total Bed Days Used 450
Utilization 71.43%
30
90 60 30 30

Q 2. a.

Thurs Fri Sat Sun

Total Beds 90
30 Total Operations 150
30 30 Total Surgeons 12
30 30 30 Total Bed Capacity (Bed Days) 630
30 30 30 Total Bed Days Used 540
Utilization 85.71%
30 Capacity is Sufficient for additional Patients
90 90 60 60

Thurs Fri Sat Sun

Total Beds 135
45 Total Operations 225
45 45 Total Operations Per day 45
45 45 45 Total Surgeons 12
Total Bed Capacity (Bed Days) 945
Total Bed Days Used 675
45 Utilization 71.43%
135 90 45 45 Capacity is Sufficient for additional Patients

will not be able to perform 45 operations

hen the capacity is increased by 50% then
ncreased bed-capacity is identical.

form each operation.

ds at 4 p.m. Given
ay is 8. Currently,
ncreased by 50%
geon-hour utilization of

1 hour to perform, and

ons that can be performed each day is 40

45 operations a day

40 operations a day
Q. 1

Q 2. b.
Q 2. c.

Q 3. a.