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    Case Study of OM-Amended

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    Saleha Satti
    - Arnold Palmer Hospital uses demographic analysis and forecasting to anticipate future demand for services. - They take a "lead capacity" approach, adding capacity before demand occurs to minimize risk but potentially leaving them with unused beds if demand does not materialize. - Major changes in the demand forecast, like lower than expected births, could leave the hospital with underutilized facilities and wasted resources like unused beds. - Regression analysis shows that demand is projected to exceed 16,000 births at point 13 in the data, which corresponds to a forecasted demand of around 64,297 births.

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    Case Study of OM-Amended

    Uploaded by

    Saleha Satti
    4K views3 pages
    - Arnold Palmer Hospital uses demographic analysis and forecasting to anticipate future demand for services. - They take a "lead capacity" approach, adding capacity before demand occurs to minimize risk but potentially leaving them with unused beds if demand does not materialize. - Major changes in the demand forecast, like lower than expected births, could leave the hospital with underutilized facilities and wasted resources like unused beds. - Regression analysis shows that demand is projected to exceed 16,000 births at point 13 in the data, which corresponds to a forecasted demand of around 64,297 births.

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    - Arnold Palmer Hospital uses demographic analysis and forecasting to anticipate future demand for services. - They take a "lead capacity" approach, adding capacity before demand occurs to minimize risk but potentially leaving them with unused beds if demand does not materialize. - Major changes in the demand forecast, like lower than expected births, could leave the hospital with underutilized facilities and wasted resources like unused beds. - Regression analysis shows that demand is projected to exceed 16,000 births at point 13 in the data, which corresponds to a forecasted demand of around 64,297 births.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    4K views3 pages

    Case Study of OM-Amended

    Uploaded by

    Saleha Satti
    - Arnold Palmer Hospital uses demographic analysis and forecasting to anticipate future demand for services. - They take a "lead capacity" approach, adding capacity before demand occurs to minimize risk but potentially leaving them with unused beds if demand does not materialize. - Major changes in the demand forecast, like lower than expected births, could leave the hospital with underutilized facilities and wasted resources like unused beds. - Regression analysis shows that demand is projected to exceed 16,000 births at point 13 in the data, which corresponds to a forecasted demand of around 64,297 births.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 3

    DEPARTMENT OF

    MANAGEMENT SCIENCES

    CASE STUDY

    CAPACITY PLANNING AT ARNOLD


    PALMER HOSPITAL
    VIDEO CASE:

    CAPACITY PLANNING AT ARNOLD PALMER HOSPITAL

    Question No. 1:

    Given the discussion in the text (see Figure S6.5) what approach is being taken
    by Arnold Palmer Hospital toward matching capacity to demand?

    Answer:

    With the help of demographic analysis they used forecasted demand


    Demographic analysis includes the sets of methods that allow us to measure the
    dimensions and dynamics of populations. These methods have primarily been
    developed to study human populations, but are extended to a variety of areas
    where researchers want to know how populations of social actors can change
    across time through processes of birth, death, and migration. In the context of
    human biological populations demographic analysis uses administrative records
    to develop an independent estimate of the population. Arnold palmer hospital
    approaches to lead strategy; the lead capacity strategy adds capacity before the
    demand actually occurs. If the demand does not materialize then the Arnold
    Palmer Hospital could quickly find themselves with unused/empty beds as well as
    the expenditure of ramping up capacity unnecessarily. It is done in anticipation of
    demand and the capacity is increased. It is a very aggressive strategy and is
    used to lure customers i.e. patients away from other competitors in this hospital
    industry.

    Question No. 2:

    What kind of major changes could take place in Arnold Palmer Hospital's
    demand forecast that would leave the hospital with an underutilized facility
    (namely, what are the risks connected with this capacity decision)?

    Answer:

    Arnold Palmer Hospital management like this approach as it minimizes risk.


    However, lead capacity strategy does have some risk. Capacity decision based
    on lead strategy, and disadvantage to this strategy is that it often results in
    excess inventory, which is costly and often wasteful. Similarly in case of Arnold
    Palmer Hospital when actual demand is not equal to the forecasted demand it
    might be a risk and waste of so many resources like unused beds, equipment,
    machinery etc.

    Question No. 3:

    Use regression analysis to forecast the point at which Swanson needs to “build
    out” the top two floors of the new building, namely when demand will exceed
    16000 births?

    Answer:

    x y xy x2
    1 6144 6144 1
    2 6230 12460 4
    3 6432 19296 9
    4 6950 27800 16
    5 7377 36885 25
    6 8655 51930 36
    7 9536 66752 49
    8 9825 78600 64
    9 10253 92277 81
    ∑xy - n
    10 10555 105550 100
    11 b = 12316 135476 121
    12 13070 156840 144
    13 ∑ 13600
    x2 - n ( ) 2 176800 169
    ∑x = 91 ∑y = 120,943 ∑xy =
    ∑ x2 = 819
    966,810

    b= 176800- 13(7)(9303)
    819 - 13|(49)

    b= 3680

    a= -
    a= 9303 - 6680(7)

    a= 16457

    Linear Regression

    y = a + bx

    y= 16457+3680(13)

    y= 64297

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