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Questions & Answers >MS6325: Operations Management Homework Assignment 4

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MS6325: Operations Management Homework Assignment 4 Due in 4th class on Oct. 7, 2016 Ø Concept Check and Practice Problems 1. Couples who are having difficulty conceiving children are increasingly turning to ...

MS6325: Operations Management Homework Assignment 4 Due in 4th class on Oct. 7, 2016 Ø Concept Check and Practice Problems 1. Couples who are having difficulty conceiving children are increasingly turning to in-vitro fertilization (IVF) treatment. A patient undergoes 1 month of initial screening appointments, then with 50% probability commences with a sequence of IVF treatment cycles. Each treatment cycle takes 2 months, and may or may not result in a successful pregnancy. It is estimated that among patients who go through the first cycle, 30% do not return for a second cycle (because of a successful pregnancy on the first try, financial limitations, personal reasons, etc.) Of those who do return for a second cycle, they undergo on average 1.5 more cycles (in addition to the first cycle). A local fertility center sees two new patients per business day on average. Assume 20 business days per month. (a) [3] What fraction of the local center’s active patients are in their first treatment cycle? (An active patient is defined as a patient in the initial screening phase or any treatment cycle.) (b) [3] Patients pay $10,000 per treatment cycle. The initial screening appointments are not charged. What are the annual IVF revenues of the fertility center? Answer: The University of Chicago Booth School of Business Operations Management (Find the critical path.) Consider the following process flow diagram and accompanying table. This depicts a generic billing process flow, where resource pools work in parallel. That is, all splits in the flow are “AND.” A job must flow through all resource pools to be completed. The average waiting time refers to the average wait in front of the resource pool. Assume that each resource pool has one server. (a) [2] What is the length of the critical path in minutes? (b) [2] What is the capacity of the billing system in bills per minute? Answer: A local fertility center sees two new patients per business day on average. Assume 20 business days per month. (a) [3] What fraction of the local center’s active patients are in their first treatment cycle? (An active patient is defined as a patient in the initial screening phase or any treatment cycle.) (b) [3]

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