Resource Allocation and Service Line Problems: Solutions Using Linear Optimization

Linear optimization is a powerful methodology for finding the minimal cost staffing and resource allocation solution when the objective function and constraints can be presented as linear combinations of the decision variables. There are plenty of problems amenable to this methodology in healthcare settings. Excel solver is used for setting up and running all examples presented in this chapter. The use of the sensitivity report produced by the Excel solver is explained and demonstrated in detail in multiple examples. Five problems are presented including keeping or dropping a service line, developing the minimal cost mix of various skill staff, optimizing the diagnostic lab tests offering, and developing the supplier’s distribution network with the minimal shipping cost for various manufacturing facilities, distribution centers, and receiving hospitals.