Question: Problem 8 Patient Group MS3 MS2 Description Med/Surg - High Intensity Med/Surg - Med. Intensity Med/Surg - Low Intensity Contribution Margin 3093 1911 1094 MS1

Problem 8 Patient Group MS3 MS2 Description

Problem 8 Patient Group MS3 MS2 Description Med/Surg - High Intensity Med/Surg - Med. Intensity Med/Surg - Low Intensity Contribution Margin 3093 1911 1094 MS1 Units Per Units Per Units Per Total Units MS3 MS2 MS1 Resource Patient Patient Patient Capacity A surgical center is trying to decide how to best allocate its resources across 3 patient groups. The contribution margins per patient are given in the table at the top right. The resource usages per patient and capacities per year are given in the table at the bottom right. a. Formulate the problem of choosing the mix of patients that maximizes total contribution margin per year as a linear program. b. Solve the problem using Solver. C. Based on your solution, what is the optimal mix of patients? d. What is the maximum total contribution margin that is achievable? e. Which resources would increase profits if they were expanded? f. Of the resources that you identified in part e, which should have the highest priority to be expanded? g. For any patient groups not included in the optimal mix, how much would their contribution margins have to increase before it would be a good idea to include them? Routine 10.15 7.14 3.61 13,087 ICU & CCU 1.79 0.25 0.02 1,344 Intermediate ICU 0.69 0.02 0.01 388 Anesthesia 1.23 0.30 0.36 1,307 Dialysis 0.05 0.04 0.00 65 EEG, ECG,EMG 2.39 0.91 0.51 2,479 OR & recovery 3.05 0.73 0.96 2,661 Oxygen Therapy 5.93 1.65 0.26 6,288

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