IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v97y2020ics0305048318307059.html
   My bibliography  Save this article

Assessing the impact of uncertainty and the level of aggregation in case mix planning

Author

Listed:
  • McRae, Sebastian
  • Brunner, Jens O.

Abstract

In this article, we present a framework for evaluating the impact of uncertainty and the use of different aggregation levels in case mix planning on the quality of strategic decisions regarding the case mix of a hospital. In particular, we analyze the effect of modeling (i) demand, (ii) resource use, and (iii) resource availability as stochastic input parameters on the performance of case mix planning models. In addition, the consequences of taking the weekly structure with inactive days without surgeries into account are assessed (iv). The purpose of this paper is to provide a guideline for the decision-maker planning the case mix on the consideration of stochastic aspects and different aggregation levels. We formulate a mixed integer programming model for case mix planning along with different stochastic and deterministic extensions. The value of the different extensions is analyzed using a factorial design. The resulting stochastic models are solved using sample average approximation. Simulation is used to evaluate the strategies derived by the different models using real-world data from a large German hospital. We find that highly aggregated basic case mix planning models can overestimate the objective value by up to 10% and potentially lead to biased results. Refining the problem decreased the gap between projected case mix planning results and simulated results considerably and led to improved solutions.

Suggested Citation

  • McRae, Sebastian & Brunner, Jens O., 2020. "Assessing the impact of uncertainty and the level of aggregation in case mix planning," Omega, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:jomega:v:97:y:2020:i:c:s0305048318307059
    DOI: 10.1016/j.omega.2019.07.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048318307059
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2019.07.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sebastian Hof & Andreas Fügener & Jan Schoenfelder & Jens O. Brunner, 2017. "Case mix planning in hospitals: a review and future agenda," Health Care Management Science, Springer, vol. 20(2), pages 207-220, June.
    2. Khouja, Moutaz, 1999. "The single-period (news-vendor) problem: literature review and suggestions for future research," Omega, Elsevier, vol. 27(5), pages 537-553, October.
    3. Lau, Hon-Shiang & Hing-Ling Lau, Amy, 1996. "The newsstand problem: A capacitated multiple-product single-period inventory problem," European Journal of Operational Research, Elsevier, vol. 94(1), pages 29-42, October.
    4. Gréanne Leeftink & Erwin W. Hans, 2018. "Case mix classification and a benchmark set for surgery scheduling," Journal of Scheduling, Springer, vol. 21(1), pages 17-33, February.
    5. Marcelo Olivares & Christian Terwiesch & Lydia Cassorla, 2008. "Structural Estimation of the Newsvendor Model: An Application to Reserving Operating Room Time," Management Science, INFORMS, vol. 54(1), pages 41-55, January.
    6. Freeman, Nickolas & Zhao, Ming & Melouk, Sharif, 2018. "An iterative approach for case mix planning under uncertainty," Omega, Elsevier, vol. 76(C), pages 160-173.
    7. Qin, Yan & Wang, Ruoxuan & Vakharia, Asoo J. & Chen, Yuwen & Seref, Michelle M.H., 2011. "The newsvendor problem: Review and directions for future research," European Journal of Operational Research, Elsevier, vol. 213(2), pages 361-374, September.
    8. Murray, Chase C. & Gosavi, Abhijit & Talukdar, Debabrata, 2012. "The multi-product price-setting newsvendor with resource capacity constraints," International Journal of Production Economics, Elsevier, vol. 138(1), pages 148-158.
    9. Nazli Turken & Yinliang Tan & Asoo J. Vakharia & Lan Wang & Ruoxuan Wang & Arda Yenipazarli, 2012. "The Multi-product Newsvendor Problem: Review, Extensions, and Directions for Future Research," International Series in Operations Research & Management Science, in: Tsan-Ming Choi (ed.), Handbook of Newsvendor Problems, edition 127, chapter 0, pages 3-39, Springer.
    10. Jie Bai & Andreas Fügener & Jan Schoenfelder & Jens O. Brunner, 2018. "Operations research in intensive care unit management: a literature review," Health Care Management Science, Springer, vol. 21(1), pages 1-24, March.
    11. Angela Testi & Elena Tanfani & Giancarlo Torre, 2007. "A three-phase approach for operating theatre schedules," Health Care Management Science, Springer, vol. 10(2), pages 163-172, June.
    12. Belien, Jeroen & Demeulemeester, Erik, 2007. "Building cyclic master surgery schedules with leveled resulting bed occupancy," European Journal of Operational Research, Elsevier, vol. 176(2), pages 1185-1204, January.
    13. Zakaria Yahia & Amr B. Eltawil & Nermine A. Harraz, 2016. "The operating room case-mix problem under uncertainty and nurses capacity constraints," Health Care Management Science, Springer, vol. 19(4), pages 383-394, December.
    14. Reinhard Busse & Jonas Schreyögg & Peter Smith, 2006. "Editorial: Hospital case payment systems in Europe," Health Care Management Science, Springer, vol. 9(3), pages 211-213, August.
    15. Yigal Gerchak & Diwakar Gupta & Mordechai Henig, 1996. "Reservation Planning for Elective Surgery Under Uncertain Demand for Emergency Surgery," Management Science, INFORMS, vol. 42(3), pages 321-334, March.
    16. William S. Lovejoy & Ying Li, 2002. "Hospital Operating Room Capacity Expansion," Management Science, INFORMS, vol. 48(11), pages 1369-1387, November.
    17. Steven Nahmias & Charles P. Schmidt, 1984. "An efficient heuristic for the multi‐item newsboy problem with a single constraint," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 31(3), pages 463-474, September.
    18. Francesca Guerriero & Rosita Guido, 2011. "Operational research in the management of the operating theatre: a survey," Health Care Management Science, Springer, vol. 14(1), pages 89-114, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sean Harris & David Claudio, 2022. "Current Trends in Operating Room Scheduling 2015 to 2020: a Literature Review," SN Operations Research Forum, Springer, vol. 3(1), pages 1-42, March.
    2. A, Augustin & P, Jouvet & N, Lahrichi & A, Lodi & LM, Rousseau, 2022. "A data-driven approach to include availability of ICU beds in the planning of the operating room," Omega, Elsevier, vol. 109(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sebastian McRae & Jens O. Brunner & Jonathan F. Bard, 2020. "Analyzing economies of scale and scope in hospitals by use of case mix planning," Health Care Management Science, Springer, vol. 23(1), pages 80-101, March.
    2. Michael Samudra & Carla Van Riet & Erik Demeulemeester & Brecht Cardoen & Nancy Vansteenkiste & Frank E. Rademakers, 2016. "Scheduling operating rooms: achievements, challenges and pitfalls," Journal of Scheduling, Springer, vol. 19(5), pages 493-525, October.
    3. Chen, Junlin & Feng, Xiaojing & Kou, Gang & Mu, Mengting, 2023. "Multiproduct newsvendor with cross-selling and narrow-bracketing behavior using data mining methods," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 169(C).
    4. Aringhieri, Roberto & Duma, Davide & Landa, Paolo & Mancini, Simona, 2022. "Combining workload balance and patient priority maximisation in operating room planning through hierarchical multi-objective optimisation," European Journal of Operational Research, Elsevier, vol. 298(2), pages 627-643.
    5. Mohammad Heydari & Kin Keung Lai & Yanan Fan & Xiaoyang Li, 2022. "A Review of Emergency and Disaster Management in the Process of Healthcare Operation Management for Improving Hospital Surgical Intake Capacity," Mathematics, MDPI, vol. 10(15), pages 1-34, August.
    6. Omolbanin Mashkani & Andreas T. Ernst & Dhananjay Thiruvady & Hanyu Gu, 2023. "Minimizing patients total clinical condition deterioration in operating theatre departments," Annals of Operations Research, Springer, vol. 328(1), pages 821-857, September.
    7. Lien Wang & Erik Demeulemeester & Nancy Vansteenkiste & Frank E. Rademakers, 2022. "On the use of partitioning for scheduling of surgeries in the inpatient surgical department," Health Care Management Science, Springer, vol. 25(4), pages 526-550, December.
    8. Hübner, Alexander & Kuhn, Heinrich & Kühn, Sandro, 2016. "An efficient algorithm for capacitated assortment planning with stochastic demand and substitution," European Journal of Operational Research, Elsevier, vol. 250(2), pages 505-520.
    9. Shuwan Zhu & Wenjuan Fan & Shanlin Yang & Jun Pei & Panos M. Pardalos, 2019. "Operating room planning and surgical case scheduling: a review of literature," Journal of Combinatorial Optimization, Springer, vol. 37(3), pages 757-805, April.
    10. Baloch, Gohram & Gzara, Fatma, 2020. "Capacity and assortment planning under one-way supplier-driven substitution for pharmacy kiosks with low drug demand," European Journal of Operational Research, Elsevier, vol. 282(1), pages 108-128.
    11. Mofidi, Seyed Shahab & Pazour, Jennifer A. & Roy, Debjit, 2018. "Proactive vs. reactive order-fulfillment resource allocation for sea-based logistics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 66-84.
    12. repec:ipg:wpaper:2013-014 is not listed on IDEAS
    13. repec:ipg:wpaper:14 is not listed on IDEAS
    14. Range, Troels Martin & Kozlowski, Dawid & Petersen, Niels Chr., 2019. "Dynamic job assignment: A column generation approach with an application to surgery allocation," European Journal of Operational Research, Elsevier, vol. 272(1), pages 78-93.
    15. Aisha Tayyab & Saif Ullah & Mohammed Fazle Baki, 2023. "An Outer Approximation Method for Scheduling Elective Surgeries with Sequence Dependent Setup Times to Multiple Operating Rooms," Mathematics, MDPI, vol. 11(11), pages 1-15, May.
    16. Thomas Schneider, A.J. & Theresia van Essen, J. & Carlier, Mijke & Hans, Erwin W., 2020. "Scheduling surgery groups considering multiple downstream resources," European Journal of Operational Research, Elsevier, vol. 282(2), pages 741-752.
    17. Cardoen, Brecht & Demeulemeester, Erik & Beliën, Jeroen, 2010. "Operating room planning and scheduling: A literature review," European Journal of Operational Research, Elsevier, vol. 201(3), pages 921-932, March.
    18. Guo, Peijun & Ma, Xiuyan, 2014. "Newsvendor models for innovative products with one-shot decision theory," European Journal of Operational Research, Elsevier, vol. 239(2), pages 523-536.
    19. repec:ipg:wpaper:201414 is not listed on IDEAS
    20. Brittney Benchoff & Candace Arai Yano & Alexandra Newman, 2017. "Kaiser Permanente Oakland Medical Center Optimizes Operating Room Block Schedule for New Hospital," Interfaces, INFORMS, vol. 47(3), pages 214-229, June.
    21. Shehadeh, Karmel S. & Padman, Rema, 2021. "A distributionally robust optimization approach for stochastic elective surgery scheduling with limited intensive care unit capacity," European Journal of Operational Research, Elsevier, vol. 290(3), pages 901-913.
    22. Nico Dellaert & Jully Jeunet, 2013. "Pareto optimal strategies for improved operational plans of elective patients under multiple constrained resources," Working Papers 2013-14, Department of Research, Ipag Business School.
    23. Andreas Fügener & Sebastian Schiffels & Rainer Kolisch, 2017. "Overutilization and underutilization of operating rooms - insights from behavioral health care operations management," Health Care Management Science, Springer, vol. 20(1), pages 115-128, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:97:y:2020:i:c:s0305048318307059. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.