Shouldice Hospital

Question 1

An important measure for Shouldice Hospital is the capacity utilization rate which can show how the hospital is currently utilizing its beds. The production process for Shouldice was designed accepts 90 people per day. Yet some days they are not maximizing capacity. As shown in the table below on Tuesday-Thursday Shouldice is completely using all of its resources. On other days it not using all of its resources and this is as low as 33%. Overall it is only operating at 71.43%.

| |Monday |Tuesday |

|Check in Day |Monday |Tuesday |

Check in Day |Monday |Tuesday |Wednesday |Thursday |Friday |Saturday |Sunday | | |Monday |45 |45 |45 | | | | | | |Tuesday | |45 |45 |45 | | | | | |Wednesday | | |45 |45 |45 | | | | |Thursday | | | |45 |45 |45 | | | |Friday | | | | | | | | | |Saturday | | | | | |45 | | | |Sunday |45 |45 | | | | |45 | | |Total |90 |135 |135 |135 |90 |90 |45 | | | | | | | | | | | | | | | | | | | | | | | |Monday |Tuesday |Wednesday |Thursday |Friday |Saturday |Sunday | | |Beds Required |90 |135 |135 |135 |90 |90 |45 |720 | |Best Operating |135 |135 |135 |135 |135 |135 |135 |945 | |Capacity Utilization Rate |66.67% |100.00% |100.00% |100.00% |66.67% |66.67% |33.33% |76.19% | |

This now increases the capacity utilization rate from 71% to 76%. The hospital could perform this many operations per day. Surgeons generally take about one hour to prepare for and perform each hernia operation, and they operate on four patients per day. Thus the hospital can operate on 48 patients per day, 4 * 12.

Question 4

|Operate at same capacity |  | |Add operations on Saturday |  | |Increase # of beds |  | | |71% |29% | |90% |10% | |76% |24% | |Revenue |585,000 |(81,000) | |741,000 |(27,000) |...