Logistics in a hospital is a complex operation: there are many different types of flows, which each have their own specific characteristics. This exercise will use example of the NHTV hospital (National Hospital for Special Care) in Breda. This hospital has a capacity of 1200 beds and is one of the largest hospitals in the Netherlands. The hospital in Breda has 3400 rooms, divided equally between 20 wards. Each room has a medicine cabinet with basic items, including four rolls of bandages and two boxes of plasters. There are also medicine cabinets in the corridors of each ward in case of accidents. In total there are 17 medicine cabinets in the corridors of each ward, which each have four rolls of bandages and two boxes of plasters. Every week, the nurses have to check stock levels in the medicine cabinets and fill in a form to indicate how many boxes of plasters and rolls of bandages need to be ordered for each ward. It takes a total of 2 hours per ward to check these cabinets and fill in the forms. The forms are sent to the Supplies department, which processes the forms and then orders the items. The ordered items are received by the Supplies department two days later, which it then distributes to the 20 different wards. Delivering the right quantities of plasters and bandages to the wards takes 0.5 hour per ward. The supplies then have to be put into all the medicine cabinets in each ward by a nurse, which takes around four hours per week.

Due to the growth in the number of patients, the workload has increased in the wards. As a result, some administrative processes are being deferred or not carried out at all. This means the Supplies department is not getting the orders on time and not enough items are being supplied. The nurses on the wards are not happy because they don't have the right bandages and plasters when they need them. The nurses have therefore decided to set up an additional stock of bandages and plasters in the wards. When a stock audit is carried out, there are found to be 140 extra rolls of bandages and 50 extra boxes of plasters in each ward. It takes the Supplies department an average of two man

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Principles of Logistics BUSS- B- 2001 Fall - 2020 CW 1 (Assignment) Session A, B and C QP

hours per ward per week to process the orders. The forms are received from the wards at different times and on different days.

The Supplies department wants to make sure that it always has boxes of plasters and rolls of bandages in stock. This department therefore always has a stock of 900 rolls of bandages and 800 boxes of plasters. On average, orders are placed 3 times per week. It costs 150 to place an order. Furthermore, each roll of bandages costs 5 and each box of plasters costs 7.50. The cost of a worker in the Supplies department is 40 per hour, while the cost of a hospital nurse is 60 per hour. The workers in the Supplies department also work an average of 10 hours overtime per week, which involves additional labour costs. This is because overtime is paid at 200% of the normal wage.

Question 3 (15 +15 = 30 Marks)

a) How many rolls of bandages and boxes of plasters are there in the hospital on an average day, and how much has the hospital invested in them?

b) What is the total cost per week of the ordering process and the supplying of the rolls of bandages and boxes of plasters? This does not include the actual cost of the plasters and bandages.