This document discusses how operations research techniques can be applied in hospital administration to optimize resource allocation and minimize costs. It describes techniques like inventory models, waiting line models, replacement models, and transportation models that are used to determine optimal purchasing quantities, scheduling of services and replacement of equipment. The document also provides examples of how operations research is used in hospitals for emergency vehicle allocation, demand forecasting, nurse scheduling, and allocating beds and staff in different hospital units.

1. OPERATIONS
RESEARCH:TECHNIQUES AND
APPLICATIONS IN HOSPITAL
ADMINISTRATION

2. Contents

3. Abstract

4. Introduction

6. •
•
•
Definition of Operations
Research (OR)

7. •
•
•
•
•
•
•
•
•
•
•

8. Techniques of
operations research

9. Operation Research study involves balancing inventory costs against one or more of the following costs:
i. Shortage costs.
ii. Ordering costs.
iii. Storage costs.
iv. Interest costs.
This study helps in taking decisions about:
i. How much to purchase.
ii. When to order.
iii. Whether to manufacture or to purchase i.e., make and buy decisions.
The most well-known use is in the form of Economic Order Quantity equation for finding economic lot size.

10. These models are used for minimising the waiting time and idle time together with the costs associated therewith.
Waiting line models are of two types:
(a) Queuing theory, which is applicable for determining the number of service facilities and/or the timing of arrivals for servicing.
(b) Sequencing theory which is applicable for determining the sequence of the servicing.
(iii) Replacement Models:
These models are used for determining the time of replacement or maintenance of item, which may either:
(i) Become obsolete, or
(ii) Become inefficient for use, and
(iii) Become beyond economical to repair or maintain.

11. These models are used to solve the problems arising when:
(a) There are number of activities which are to be performed and there are number of alternative ways of doing them,
(b) The resources or facilities are limited, which do not allow each activity to be performed in best possible way. Thus these models
help to combine activities and available resources so as to optimise and get a solution to obtain an overall effectiveness.

12. These are concerned with the selection of an appropriate sequence of performing a series of jobs to be done on a service facility or
machine so as to optimise some efficiency measure of performance of the system.
(viii) Simulation Models:
Simulation is an experimental method used to study behaviour over time.
(ix) Network Models:
This is an approach to planning, scheduling and controlling complex projects.

13. Applications of
operations research

14. resources won't get wasted and there is
optimal use of the resources as healthcare is a very sensitive topic to deal
with as it involves the life of a human being. Many have started to use
operational research as a technique to optimize these resources and
minimize costs. Operations research is used right from proper allocation of
beds in the emergency room to the proper allocation of nurses in the intensive
care units to selection of hospital location to forecasting the future demand.
The optimum allocation of emergency vehicles is very important because the
question of life and death of a person. While planning for this the two main
objectives need to be kept in mind: there should be maximum
population coverage by a single unit of vehicle; minimization of the total travel
distance from locations to the hospitals which helps them to reach faster.
(b) Demand Forecasting
Demand forecasting is basically predicting the future
demand of a particular product in advance. It includes both
controllable and uncontrollable factors. Proper demand
forecasting is of utmost importance as it forms a part of the
basis of the input of the model. The techniques for demand
forecasting can either be quantitative or qualitative,
however quantitative requires data in the form of numbers
which is more accurate.
Finarelli and Johnson (2004) gave an elaborate nine-step,
quantitative demand forecasting model for healthcare
services-Effective forecasting of demand for healthcare
services requires nine steps:

17. [1] Abdur Rais And Ana Viana, 2010, “ Operations
Research in Healthcare: a survey”, (From International
Transactions in Operational Research) available at
https://www.ispor.org/TaskForces/Operations-Research-
in-Healthcare.pdf
[2} Eduardo P´erez, Lewis Ntaimo, Wilbert E. Wilhelm,
Carla R. Bailey, Peter McCormack, 2013, “Patient and
Resource Scheduling of Multi-Step Medical Procedures in
Nuclear Medicine”, (From Health Care Management
Science, December 2013, Volume 16 ,Issue 4)
[3] Komgrit Leksakul, Sukrit Phetsawat , 2014, “Nurse
Scheduling Using Genetic Algorithm”(From Mathematical
Problems in Engineering ,Volume 2014)
[4] Ogulata, S.N., Koyuncu, M., Karakas, E., 2008. Personnel
and patient scheduling in the high demanded hospital

18. Conclusion
•
•
•
•
•
•
•
•