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8-2: Durham Health Clinic has a contribution margin of $35 per visit.  Calculate the break-even point in visits with fixed costs at $4000, $6500, and $8500 per week.  Given this analysis, as a manager, what would you recommend and why?

8-3:  Durham Health Clinic is considering signing a contract to perform 50 pre-employment physicals per week for a specific corporation.  In terms of staff time, a pre-employment physical requires 0.20 hours in Reception/Discharge, 0.45 hours in Nursing and Testing, and 0.20 hours in Medical Examination.  By work-station, determine how many work hours per week will be needed to perform these physicals.

Chapter 9 Homework


9-1: Alpha Walk-in Clinic operates as a single channel single server system.  On Tuesdays, its average arrival rate per hour is 7.0.  Analysis indicates that its service rate is 8.5 patients per hour.  Using queuing theory describe this service system.  What is:


a.       The probability that the clinic is idle – no person waiting or being served?

b.      The average number of patients in the system?

c.       The average time (hours) a patient spends in the system (waiting + service time)?

d.      The average number of patients in the queue waiting for service?

e.       The average time (hours) a patient spends in the queue waiting?

f.       The probability that the patient, upon arrival, must wait?




Chapter 9 Extra Credit

A mix of resources is necessary for a service system to provide a specific service.  For example, in our walk-in clinic the receptionist must gather and record patient information and bill the patient’s health insurance plan or collect cash.  The nurse or physician’s assistant may interact with the patient to gather a medical history, get the reason for the current visit, record vital signs, and also do the discharge procedure.  The physician will diagnosis which sometimes requires ordering tests, treating the patients and recording the encounter in the medical records.  This simple service system is dependent upon the available work hours of the receptionist, nurse and physician.  Analysis indicates that three types of visits are provided:  routine, extended, and physicals.  Capabilities per hour have been determined based on historical records and sampling.  Using the following data, describe the system’s capacity:


        Capabilities per Hour

                                                                Type of Visit

                                                Routine                         Extended         Physical

Receptionist                      32                           35                           25

Nurse                                    6                              3                             4                            

Physician                             8                              5                             6            

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