CASE 3: Capacity Planning at Arnold Palmer Hospitals V IDEO C ASE S TUDY CAPACITY PLANNING AT ARNOLD PALMER HOSPITAL The Arnold Palmer Hospital video for this case is available on the video cassette/DVD from Prentice Hall that accompanies this text. (Its running time is 9 minutes.). 1. Given the discussion in the text, what approach is being taken by APH toward matching ca-pacity to demand? Referring to text Figure S7.4, Arnold Palmer Hospital’s capacity first lagged demand (part c), and now is leading demand with incremental expansion (part a). The new building will provide sufficient capacity for several years. The top 2 floors (left unfinished for additional beds) and operating rooms (on the 4th floor, available for horizontal expansion) will be built out when needed. 2. What kind of major changes can take place in APH’s demand forecast that would leave the hospital with an underutilized facility (namely what are the risks connected with this capacity de-cision)? a) Demand will not continue to grow dramatically. The hospital believes that the new building will
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