#### Explain the implications of basing capacity requirements for a service facility on average demand.

If only the average data (such as the number of days a patient stays) is available, how would you suggest that VMH come up with a reasonable capacity plan for the maternity ward?

Determine the percentage utilization level of the maternity ward beds based on projected patient load. Determine the capacity cushion as a percentage based on demand projections.

Since Lee believes that a capacity cushion of at least 15% is desirable to provide patient service, determine how many beds are required to have a 15% capacity cushion.

Describe other factors that Lee must take into account as she considers capacity expansion options.

Chapter 10: Layout Design at Valley Memorial Hospital

Describe the main criteria that you will use to evaluate alternate layout designs.

Calculate the load-distance score of the preliminary layout.

Calculate the load-distance score of the alternate layout, which incorporates Carol’s suggestions.

Looking at the data, suggest another way to locate the departments which would result in a better load-distance score.

If some of the medical professionals express a concern about basing the layout design solely on the traffic intensity between departments, how can you modify your analysis to allay their concerns?

Chapter 11: Work system Design at Valley Memorial Hospital

Describe what type of study you would do to estimate the proportion of time the nurses spend on different activities. Describe how such a study would be different than a time study.

Describe the steps in the study that you would do.

If Lee wants to be 95% confident that your estimate is within an absolute error range of plus or minus 2 percent, how many observations should you make?

Describe in detail how you would make the required number of observations. (Note that there are ten nurses in the Obstetrics area and you may need to make observations over many days.)

What other considerations do you think are important for Lee to know before she decides to give you the go-ahead to actually carry out the study?

Chapter 12: Inventory Management at Valley Memorial Hospital

Develop an estimate for the fixed ordering cost at VMH.

Develop an estimate for the current annual holding cost per unit at VMH.

Develop an estimate for the annual holding cost per unit for the supplier’s offer.

Develop a recommendation with regards to accepting or rejecting the offer.

Present your results in a memo. Explain how you came to your conclusions. Show every step of your work, both for Meg’s information and in case she gets audited.

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