### Complete load-distance analysis for preliminary layout

Assignment Help Operation Management
##### Reference no: EM13732650 , Length: 1200 Words

Capacity Planning And Facility Location And Layout

Preparation

Jackson Medical Diagnostics Lab is a small lab providing medical testing for doctors and hospitals. It was founded 10 years ago, has a good reputation among local doctors, and has been experiencing strong growth the past two years. Jackson's general manager knows from a relatively recent operations management analysis that the lab's design capacity is 340 patients per day, its effective capacity is 310 patients per day, and the lab currently processes 295 patients per day. The general manager is concerned that the lab will not have the capacity to meet future demand unless the lab is expanded. She has hired a market research firm to study the demand for the lab's services in the area.

After completing its study, the market research firm predicted that there is a .60 probability of continued high demand (PH) for the lab's services over the next five years, and a .40 probability of low demand (PL). Based on that, Jackson's general manager has decided to move forward with an expansion. However, she is not sure whether she should do a small expansion (SE) by taking over some adjacent vacant office space that has recently become available, or do a large expansion (LE) by moving the lab to a different floor of the same building.

The general manager has worked with the lab's finance manager to come up with an estimate that a small expansion would have a profitability of \$35,000 if the demand for the lab's services is low (ProfitSmallLow). If the lab undertakes a small expansion and the demand for the lab's services is high, the lab would likely have to undertake a second small expansion (assuming appropriate space was available), and the profitability of the two expansions would be \$55,000 (ProfitSmallHigh). If the lab undertakes a large expansion, the profit would be \$90,000 if the demand for its services is high (ProfitLargeHigh), but only a \$52,000 profit is the demand is low (ProfitLargeLow).

Instructions

Complete the following three components:

Component 1. First, briefly describe the operations management issue in the scenario above, and describe how you would approach an analysis.

Component 2. Draw or outline a decision tree showing the possible decisions, the probability of each, and the profitability of each. Based on those probabilities and profits, determine the probabilistic profitability of each, and thus the best expansion decision for Jackson to pursue.

Component 3. As part of considering these two expansions, Jackson's general manager is looking into how they might best lay out the lab areas if they do the large expansion. The new larger space they would be using is already divided into several rooms connected by doors. Plumbing is available in each area, and thus the bathrooms (which are not yet built) could be located in any area. Jackson's general manager would like to design a layout that minimizes the number of trips employees must make between rooms each day.

Her preliminary layout involves a 3x2 equal size room arrangement. One set of three rooms in that preliminary layout consists of the reception (R) room, the office (O), and the private patient stations (P) room. The other set of three rooms in that preliminary layout consists of the employee break area (E), the bathrooms (B), and the storage area (S). (Refer to the Preliminary Layout Diagram.)

 Preliminary Layout Diagram Reception (R) Office (O) Private patient stations (P) Employee break area (E) Bathrooms (B) Storage area (S)

Jackson's general manager has asked each employee to fill out a form logging how many times they currently walk from one area to the next (in their current location). Refer to the Data Table for the resulting data.

 Data Table (R) (O) (P) (E) (B) (S) Reception (R) - 350 30 40 28 5 Office (O) - 410 76 42 23 Patient stations (P) - 15 295 2 Employee area (E) - 37 8 Bathrooms (B) - 3 Storage (S) -
• Complete a load-distance (LD) analysis for the preliminary layout by assigning a load of 15 feet for each room-to-adjacent-room movement (assume there is a door between all adjacent rooms).
• Describe your calculations associated with that analysis, and calculate and provide the final LD numeric value.

Verified Expert

### Previous Q& A

#### Consider a constant cost perfectly competitive industry

Consider a constant cost perfectly competitive industry which is initially in long-run equilibrium under current demand conditions. Assume that the number of firms in the industry is fixed at its current level ie: the number of firms cannot be change..

#### There are proposals to change the u.s. federal tax system

There are proposals to change the U.S. federal tax system from primarily an income base to a consumption base. One popular proposal comes from Cornell economist Robert Frank. You may explore his proposal in the video titled, "Robert Frank: Consumptio..

#### What recommendations would you give the company

What are the pros and cons of Anglo American's adoption of an aggressive strategy in combating HIV/AIDS strategy? What recommendations would you give the company concerning its HIV/AIDS policy?

#### Why the south lost the american civil war

WHY THE SOUTH LOST THE AMERICAN CIVIL WAR. The key reasons as to why the South Lost the Civil War to the North.

#### Identify various problems in forming multinational market

Identify the various problems that would be encountered in forming multinational market groups of such countries

#### What are the pros and cons of anglo american adoption

What are the pros and cons of Anglo American's adoption of an aggressive strategy in combating HIV/AIDS strategy? What recommendations would you give the company concerning its HIV/AIDS policy?

#### A good with a downward sloping demand curve

State whether you agree or disagree with the following statement. "A good with a downward sloping demand curve could be either normal or inferior. Explain.

#### Explain why the message was or was not effective

explain why the message was or was not effective. What ideas could have improved the artifact? Describe the audience the message was designed for.

#### Why is the internet a particularly good promotion medium

Why is the Internet a particularly good promotion medium for Harley-Davidson? Discuss at least three (3) reasons

#### Discuss whether fred is resident of australia for taxation

Advise Angelina and Bradley on the capital gains tax consequences regarding the abovementioned transactions for the 2014/2015 income year.

### Similar Q& A

#### Determine the range of annual production

In other words, for what range of production output would the purchase option be best? What range would be best for the production option 1? And, what range would be best for the production option 2?

#### Illustrates what actors also forces in levis stress

Illustrates what actors also forces in Levis stress also company micro also macro environment have affected its marketing position.

#### Construct a competitive profile matrix

Construct a Competitive Profile Matrix. ON Microsft and one or two (1 or 2) of its major competitors and at least six (6) success factors that you believe to be critical to success in this industry

#### What is the best way to develop

What is the best way to develop, introduce, regulate, provide access, and pay for new health technologies in the 21st century?

#### Write down the production-planning strategies and how might

what enterprise resource planning erp systems does your organization rely on? choose an erp system and discuss why you

#### Student learning outcome the student will apply a time

student learning outcome the student will apply a time series forecasting method to calculate forecasts and use the

#### In a paper of at least 6 - 8 pages excluding title and

creative colors a fictitious company sells art supplies through three retail stores in the state of washington as well

#### Explain how could the internet be helpful to managers

Should ethical considerations be included in analyses of an organization's internal also external environments. Explain why or explain why not.

#### Process of drafting a request for proposal

Before considering any major capital expenditure, going through the process of drafting a Request for Proposal (RFP) is a key step. It is critical to plan this document carefully and think through all the needs for the project.

#### 1 explain why are organizations buying more professional

1. why are organizations buying more professional services?2. how are governmental mega projects procured?3. what are

#### Describe the organizational culture

Describe the organizational culture of your selected company including any changes it has experienced.