Business I / Operations Management
Practice question · Multiple choice

A hospital plans its emergency department to run at 98% average utilization "for efficiency." Queueing theory predicts…

Hints
  1. What absorbs a random surge when the system is nearly full?
  2. Queues grow toward infinity as utilization approaches 1.
Show the answer

B. Waiting times exploding near full capacity

Why

With variable arrivals, waiting time scales roughly with ρ/(1ρ)\rho/(1-\rho): at 98% the denominator is 0.02 and any surge stacks patients for hours. Slack capacity is not waste in variable-demand systems, it is the product.

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