# Capital equipment Case study

Specific forecasts Service transfer to new facility Service remain in existing facility Staffing needs Capital equipment Performa accounting data Regulatory requirement IQ : Given the capacity planning discussion In the text (see Figure SO. 6) what approach Is being taken by Arnold Palmer Hospital toward matching capacity to emend?

Answer: The approach that is being taken toward matching capacity to demanding is the Leading Strategy 0 Management leads capacity incrementally C] Management could also add new capacity which allow it to stay ahead of demand New Capacity Demand 1 23 Time (periods) Q:Use regression analysis to forecast the point at which Swanson needs to “build out” the top two floors of the new building, namely, when demand will exceed 16,000 births. =2010.

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34 Conclusion, regression analysis show 2010 Swanson able achieve 16,000 births and 2011 demand will exceed 16,000 births.

How we get the calculation? Next slide regression analysis . Regression Analysis Y(Year)=a +b(x) re=O. 9720 show the relationship between birth & year show a strong So, change of year will give a positive impact on total of births or vice versa. [email protected]) Births(b) coefficients standard Error 1,987.

8356 0. 6971 0. 0014 0. 0001 t stats 2,851. 4554 20.

4132 P-value 0. 0000 0. 0000 Lower 95% 1,986. 3167 0. 0013 upper 95% Lower 95.

0% upper 95. 0% 1,989. 3545 1,986. 3167 1,989. 3545 0. 0016 0.

0013 0. 0016 Y=2010. 34 a is a constant ,b is the slope (also…

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Focuses is delivery of babies. Capacity per year is 6,500 births with 281 beds. 2008. 035 Planning Teams study on capacity expansion included: 1) 2) 3) 4) 5) 6) 7) Specific forecasts Service transfer to new facility Service remain in existing facility IQ : Given the capacity planning discussion in the text (see Figure SO. 6) what approach is being taken by Arnold Palmer Hospital toward matching capacity to demanding is the Leading Strategy 0 Management leads capacity incrementally Expected demand and book notes.

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