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Question: Instructions: 1.      Read each case carefully 2….

by | Dec 1, 2023 | Posted Questions



Instructions:
1.      Read each case carefully
2.      Keep two decimal positions
throughout the calculation
3.      Write up your answers following
each case

Case: 1

A practice would like to allocate their resources optimally
between the orthopedic and rheumatology departments. The revenues
per case generated by orthopedics and by rheumatology are $2000 and
$1000 respectively. The average number of visits, utilization of
radiology resources per case and available resources are provided
bellow:

Orthopedics Rheumatology Available resources
Visits (hours) 2 3 600
Radiology (procedures) 4 1 800
Revenue ($) 2000 1000

Use linear
programming method to determine:
1.      What are the decision
variables?
2.      What are constrains on the
decision to allocate resources optically so that the profit can be
maximized?
3.      What is the Objective
Function?

Answer the
following questions using either graphical solutions or solver in
Excel
4. With the optimal solution,
how much total revenue can be generated?
5. To maximize the revenue,
what should be the percentages of visits and radiology allocation
between the two departments?

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