"The Focused Factory," Harvard Business Review, May-June 1974, 113-22.

2. For these next questions, assume the following:

• Every patient spends 4 nights in the hospital. So, for instance, a patient that is admitted on Sunday morning will leave Thursday morning.
• Patients are only admitted Sunday through Thursday (disregard any other dates mentioned)
• Hernia operations are only performed Monday through Friday.
• The 14 additional hostel rooms can hold only one patient each.
• A patient may stay in a hostel room only on his first night, i.e. before the operation.
• There are only 89 regular hospital beds.
• The surgery teams can collectively perform no more than 37 operations in a single day, assuming operating rooms are available.
• 137 patients are operated on per week. (We calculate 137 patients/week from 6850 patients/year in 1982 with 50 operating weeks/year.)
• 20% of patients require a general anesthetic.

(a) Compute the annual net profit of clinic and hospital operations (separately). The clinic performs operations, and the hospital maintains the beds. Which is more profitable?

(b) Use Little's Law to compute the average number of beds occupied.

(c) Develop a weekly schedule of admittances and discharges that achieves a weekly throughput >= 137 patients without violating any major resource constraints. Develop your weekly schedule using a table something like the following:

	Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday
# Admittances
# Departures
# Beds occupied overnight

Note that you should assume that each week follows the same schedule of admittances, departures, etc.