Business I / Operations Management
Practice question · Multiple choice

A hospital plans its emergency department at 98% average utilisation and waiting times explode. Why does the last few percent cost so much?

Hints
  1. Patients do not arrive on a timetable. Ask what absorbs a burst when the system is already full.
  2. Sketch waiting time against utilisation. What is the shape near 100%?
Show the answer

D. Because queue length grows without bound as utilisation nears 1

Why

Waiting time rises roughly as 1/(1−ρ), so it is nearly flat until it turns vertical, variability needs slack to absorb it and 98% leaves none. High utilisation looks efficient on a spreadsheet and is the reason motorways jam at exactly the moment they are being used best.

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