14 Jul QUESTIONSQUESTION 1 [25%]. An orthopedic clinic ta
QUESTIONSQUESTION 1 [25%]. An orthopedic clinic takes appointments between 8:00 and 11:30 a.m. andbetween 1:00 and 3:30 p.m. and is operational 234 days per year. The clinic receives 24,903 visitsannually. Because patient visits involve more than just a visit with the MD, the clinic flow is nota simple in-and-out process. Patients are subjected to a multiple-line queuing system. The first stepis patient registration. Four registration clerks are able to register an average of 5.5 patients perhour. Registration includes co-pay collection, insurance and referral verification, and updatingdemographics in the computer information system. Although the clerical staff have other duties atthe end of the day, their only responsibility for this six-hour span is to register patients. The secondstep is nurse check-in, in which six nurses spend an average of ten minutes with each patient. Theaverage time a patient is with one of the seven MDs is twenty-four minutes. Arrivals follow aPoisson distribution, with a mean of 15 for all steps.For each individual process (registration, nurse check-in, and MD visit), compute the followingperformance metrics using the Excel queuing template:1.a Arrival and service rates1.b Average number of patients in a queue1.c Average number of patients in the system1.d Probability of idle time1.e System utilization rateQUESTION 2 [25%]. Saunders Family Medicine has two full-time employees who answerincoming patient calls. These employees schedule appointments, transfer calls to the appropriatephysician’s nurse, or send calls to a triage nurse for further clarification of the patient’s needs.Assume an operational cost per hour of $12.30 (the employees’ hourly wage) and customer waitingcosts (or busy server costs) of $150 per hour (the equivalent of the average reimbursement for anacute appointment). Patients call the clinic at a rate of forty-eight calls per hour and the rate canbe described as a Poisson distribution. Each call takes on average two minutes to complete.2.a Determine the service rate.2.b Determine the number of patients waiting for service.2.c What is the probability that a patient will have to wait for service?2.d Calculate the system utilization rate.2.e What is the total cost?2.f What is the impact of adding an additional server on these performance measures?QUESTION 3 [25%]. A sleep disorder center orders several supplies from a local sleep andrespiratory care distributor. Based on the pattern of use over the past three years of operations, theorder quantity for these materials has been set at twenty-five items. Table 1 below depicts otherrelevant data from the sleep disorder center’s inventory records.Table 13.a Determine the economic order quantity for each item.3.b Calculate the annual cost of inventory management.3.c Calculate the investment cost per cycle for each item.3.d Determine the A-B-C classification of these items. Assumption: if an item’s annual cost isabove 15% of total cost of all items, it will be classified as A. If an item’s annual cost is below 1%of total cost of all items, it will be classified as C.QUESTION 4 [25%]. A portion of a hospital pharmacy formulary contains the twentymedications listed in Table 2.Ordering cost of items is $30, and yearly carrying cost is 5 percent of the unit price.4.a Determine basic the EOQ on each item.4.b Provide the A-B-C classification of these items. Use the same assumption given in Question 3.4.c Calculate the yearly inventory management cost.4.d Determine the investment cost (per cycle) for each item.
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