Question
The cost of providing public services at a local hospital has been scrutinized by management. Although these services are used as marketing tools for the
The cost of providing public services at a local hospital has been scrutinized by management. Although these services are used as marketing tools for the hospital, the cost and availability of scarce resources require their optimal allocation while minimizing costs. Two popular programs being assessed for this purpose are Family Planning (FP) and Health-Drive-Screening (HDS); their cost to the hospital for each offering are $200 and $400, respectively. The health care manager in charge of operations found three common patterns of resource consumption for each of these services and the minimum available resources, shown in the table below.
Resource Type | FP | HDS | Min available resources per month |
Staff Time | 60 | 120 | 480 mins |
Material | 30 | 90 | 250 kits |
Rent Space | 1 | 3 occasions |
a) Formulate this as a linear programming problem.
b) Solve the problem graphically.
c) Solve problem using Excel Solver.
d) In a given month, how many FP programs and how many HDS programs should be offered? e) With the proposed class offerings, how many kits will be left over (not distributed in the classes)?
f) What is the yearly cost of these two programs to the hospital ?
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