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Case summary:
The AP hospital has experienced a considerable growth in the demand for its services. The main focus of the hospital is the delivery of babies. Due to the growing popularity and despite serving many people the hospital was unable to satisfy the full demand.
The hospital was ready with the capacity expansion process into a new building. There were 35 teams appointed to analyze the expansions process and decide all the process functions after the expansion. When the new facility is up and running the hospital will be able to match demand efficiently.
To determine: The approach taken by AP hospital to meet the capacity with the demand.
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Chapter 7 Solutions
Pearson eText Principles of Operations Management: Sustainability and Supply Chain Management -- Instant Access (Pearson+)
- Cost Allocation; Cost Shifting In the last several years, airlines have succeeded in boosting profits by adding fees for previously free services such as in-flight snacks and meals, checked baggage,priority boarding, and other services. These fees have caused some shifts in customer behavior,as more airline passengers bring their own snacks on the airline and pack a smaller bag that isacceptable for “carry-on.” By using carry-on luggage, the airline customer can save $25 or more inbaggage-checking fees. This situation has resulted in a cost shifting for passengers, airlines, and airport security. As the number of checked bags decreases, the cost of baggage handling for the airlinesdecreases (and revenues increase for those bags that are checked). In contrast, the costs and delaysin security checkpoints increase as security personnel must check additional carry-on bags, causingdelays for passengers and the need for additional security personnel to handle the increased numberof carry-on…arrow_forwardCASE 3: Which of the following capacity assessment criteria is the infertility specialist likely questioning? Mary's ability to give clear reasoning for her decision Mary's ability to make a choice consistent with her expressed goals and values Mary's ability to understand relevant medical information including the risks and benefits associated with her decisionarrow_forwardCASE OUTSOURCING OF HOSPITAL SERVICES Due to financial pressures that many hospitals face, the Deacon- ess Clinic in Billings, Montana, decided to outsource a number of services, although in somewhat different ways. First, the hospital outsourced its cafeteria food service. Although the food service employees were hired by the outside firm, they still felt a sense of ownership of their jobs, and still felt connected to the hospital because of the family atmosphere in the kitchen and the cafeteria. When the hospital tried the same thing with housekeeping, employee turnover became a problem. An investigation revealed that because the housekeeping employees were more isolated in their work, they lost what little feeling of being connected to the hospital they had. The problem was solved by hiring the employees back but using the outsource company to manage housekeeping. The hospital also decided to outsource its laundry service. This time, the hospital approached a rival hospital about…arrow_forward
- Q A hospital is considering a new procedure to be offered at Rs. 20,000 per patient. The fixed cost per year works out to Rs. 500,000 with variable costs of Rs. 10,000 per patient. A) What is the Break even quantity, in terms of number of patients, for this service. B) If the most pessimistic sales forecast for the proposed service is 70 patients, what would be the procedure’s profit?arrow_forwarddescribe systematic approach to long term capacity decisions ?arrow_forwardExplain,, what are the main challenges associated with capacity planning?arrow_forward
- Strengths of 4-star and 5-star hotels Multilingual staff with a high staff to visitor proportion. A 24-hour front counter, valet stopping, steward benefits, a custodian welcoming each visitor at the entry, and separate attendant staff accessible somewhere around 2/3 of the day. Separate lifts for visitors and hotel staff. That equivalent degree of solace applies to room conveniences, too. AAA jewel appraisals are separated by the level of the lodging outperforming client assumptions. Four-precious stone inns are refined, upscale, and up-to-date all through the whole lodging, including the visitor rooms. Five-precious stone inns give extreme extravagance and refined facilities. rooms in four-star lodgings including updated conveniences, for example, huge sovereign or lord beds, additional seating, pad top beddings, smaller than normal bars, and name-brand shower items. Five-star lodgings exceed everyone's expectations with curiously large marble or rock restrooms, twofold vanities,…arrow_forwardWhat are the main challenges associated with capacity planning?arrow_forwardDescribe Strategies for Adjusting Capacity?arrow_forward
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