2: Formulate the following problem and solve it using LP. The profits for the DRG's are $ 68 for DRG1, $ 120 for DRG2, $110
2: Formulate the following problem and solve it using LP. The profits for the DRG's are $ 68 for DRG1, $ 120 for DRG2, $110 for DRG3, $ 82 for DRG4, and $ 90 for DRG5. The diagnostic services used are 12 minutes for DRG1, 15 minutes for DRG2, 10 minutes for DRG3 and 15 minutes for DRG4 and 16 minutes for DRG5. The nursing services used are 28 minutes for DRG1, 22 minutes for DRG2, 12 minutes for DRG3, and 30 minutes for DRG4, and 10 minutes for DRG 5. Reporting/record keep time is 12 minutes for DRG1, 17 minutes for DRG2, 19 minutes for DRG3, and 20 minutes for DRG4, and 6 minutes for DRG 5. DRG 3 referrals come from DRG 5 diagnoses and therefore DRG 3 is limited to less than 80% of the DRG 5's seen at the clinic. Determine the optimal mix of DRGs to be treated given 200 hours of diagnostic time, 360 hours of nursing time and 260 hours of reporting/recordkeeping time available each week.
(i) Formulate the problem. (ii) Solve using Excel and answer the following questions based on the sensitivity analysis output. (ii a) What is the optimal solution? Provide your answer as an instruction to the business. (ii b) What is the value of 10 more hours of nursing time each week?
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