A what is the capacity rate per week of the hospital

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Managerial Accounting: The Cornerstone of Business Decision-Making
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Chapter 3 / Exercise 3-54
Managerial Accounting: The Cornerstone of Business Decision-Making
Hansen/Mowen
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(a) What is the capacity rate (per week) of the hospital? (b) What is the weekly throughput rate of the hospital? (c) What is the average bed utilization? (d) How many patients will be in the hospital during each day of the week? Draw an inventory build-up diagram with days of the week plotted on the horizontal axis and number of patients plotted on the vertical axis. 3. The vice president of the hospital wants to increase the throughput rate of the hospital. He has a target of increasing the weekly throughput rate by 20% (as compared to the throughput rate of Question 3(a)). One option to increase throughput is to add Saturday operations (i.e., admit 30 patients on Friday for Saturday operation, while still maintaining 30 operations from Monday to Friday). (a) What is the average bed utilization? (b) How many patients will be in the hospital during each day of the week? Draw an inventory build-up diagram with days of the week plotted on the horizontal axis and number of patients plotted on the vertical axis. 4. The surgeons and other hospital unions reject the idea of having Saturday operations. The vice president is determined to increase the throughput rate by 20% without changing Shouldice practice (i.e., each surgeon still operates on four patients per day; each operation still takes one hour; operating rooms can be used from 7:30 am till 3:30 pm; the hospital committed to three-day process). (a) Does any capacity needed to be added to the hospital? If so, what resources need to added? (b) Suggest a plan to increase the throughput rate of the hospital by 20% while maintaining every-day operations and adding as few additional resources as possible (remember Healthcare resources are expensive!). Do not hand in this assignment, but please be prepared to discuss this case in class. Assignment 4 Analyze Hewlett-Packard - Supplying the DeskJet Printer in Europe Case. First answer questions 1, 2, and 3 given at the end of the case. (The “current policy" referred to in question 2 is described at the bottom of this document.) Then answer the additional question given below. Finally, answer question 4 given at the end of the case. Several hints are provided below.
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Managerial Accounting: The Cornerstone of Business Decision-Making
The document you are viewing contains questions related to this textbook.
Chapter 3 / Exercise 3-54
Managerial Accounting: The Cornerstone of Business Decision-Making
Hansen/Mowen
Expert Verified
1 0 Additional Question: Instead of supplying generic printers to the European market, another alternative that can be considered is to air freight the printers to the European DC. Using air freight will cut the shipment time from 5 weeks to 1 week. The transportation supervisor at HP was convinced that this was the correct approach. She felt that shortening the lead time means faster reaction to unexpected changes in product mix. That should mean lower inventory and higher product availability. Air freight is expensive, but it is worth it. Suppose that air freight cost an additional $10 per unit.

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