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International Journal of Science, Strategic Management and Technology

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APPLICATIONS OF OPERATIONS RESEARCH IN REAL-LIFE SCENARIOS: HOSPITAL RESOURCE ALLOCATION (LINEAR PROGRAMMING AND GOAL PROGRAMMING)

AUTHORS:
Manan Beria
Naman Shah
Nandini Moorthy
Mentor
Affiliation
Bsc. Finance, NMIMS Deemed to be University
CC BY 4.0 License:
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
A hospital has a static number of ward beds, intensive care unit (ICU) beds, operating theatre (OT) hours, nurses and doctors and a weekly problem of allocating these resources between various departments and patients groups. This pressure is particularly strong in India, where there are roughly 1.6 hospital beds and 0.7 doctors available per 1,000 people, which is significantly lower compared to most of the larger economies in the world. This report focuses on the use of Operations Research (OR) in making these decisions and specifically on linear programming (LP). In depth analysis of two journal articles. The first, published in the European Journal of Operational Research by Blake and Carter (2002), is a linear goal programming model for determining the case mix of a Toronto teaching hospital following an 18% reduction in funding. In Naval Research Logistics, Mehrotra et al. (2020) develop a stochastic mixed-integer linear program to help allocate and share the stockpile of ventilators in the United States during COVID-19 between the states. For each paper we describe the real-life problem, the model, the solution method and its strengths and weaknesses. We then formulate a general LP for the problem of resource allocation at a hospital and solve a numerical example of our own, using Python. The illustration defines the binding resources and prices them with shadow prices, examines the sensitivity of the ICU capacity, and demonstrates how a 10% reduction in the nursing hours makes it necessary to make a decision between financial balance and service volume through goal programming.
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Beria, M., Shah, N. & Moorthy, N. (2026). Applications of Operations Research in Real-Life Scenarios: Hospital Resource Allocation (Linear Programming and Goal Programming). International Journal of Science, Strategic Management and Technology, 02(10), 1-9. https://doi.org/10.55041/ijsmt.v2i10.037

Beria, Manan, et al.. "Applications of Operations Research in Real-Life Scenarios: Hospital Resource Allocation (Linear Programming and Goal Programming)." International Journal of Science, Strategic Management and Technology, vol. 02, no. 10, 2026, pp. 1-9. doi:https://doi.org/10.55041/ijsmt.v2i10.037.

Beria, Manan,Naman Shah, and Nandini Moorthy. "Applications of Operations Research in Real-Life Scenarios: Hospital Resource Allocation (Linear Programming and Goal Programming)." International Journal of Science, Strategic Management and Technology 02, no. 10 (2026): 1-9. https://doi.org/https://doi.org/10.55041/ijsmt.v2i10.037.

References
Blake, J. T., & Carter, M. W. (2002). A goal programming approach to strategic resource allocation in acute care hospitals. European Journal of Operational Research, 140(3), 541-561. https://doi.org/10.1016/S0377-2217(01)00219-3

Blake, J. T., & Donald, J. (2002). Mount Sinai Hospital uses integer programming to allocate operating room time. Interfaces, 32(2), 63-73. https://doi.org/10.1287/inte.32.2.63.57

Charnes, A., & Cooper, W. W. (1961). Management models and industrial applications of linear programming. New York: Wiley.

Dantzig, G. B. (1963). Linear programming and extensions. Princeton, NJ: Princeton University Press.

Hof, S., Fügener, A., Schoenfelder, J., & Brunner, J. O. (2017). Case mix planning in hospitals: A review and future agenda. Health Care Management Science, 20(2), 207-220. https://doi.org/10.1007/s10729-015-9342-2

Huangfu, Q., & Hall, J. A. J. (2018). Parallelizing the dual revised simplex method. Mathematical Programming Computation, 10(1), 119-142.

Hulshof, P. J. H., Kortbeek, N., Boucherie, R. J., Hans, E. W., & Bakker, P. J. M. (2012). Taxonomic classification of planning decisions in health care: A structured review of the state of the art in OR/MS. Health Systems, 1(2), 129-175.

Mehrotra, S., Rahimian, H., Barah, M., Luo, F., & Schantz, K. (2020). A model of supply-chain decisions for resource sharing with an application to ventilator allocation to combat COVID-19. Naval Research Logistics, 67(5), 303-320. https://doi.org/10.1002/nav.21905

Virtanen, P., Gommers, R., Oliphant, T. E., et al. (2020). SciPy 1.0: Fundamental algorithms for scientific computing in Python. Nature Methods, 17, 261-272.

World Bank. (2025). World Development Indicators: Hospital beds (per 1,000 people), SH.MED.BEDS.ZS; Physicians (per 1,000 people), SH.MED.PHYS.ZS. Retrieved October 2026 from https://data.worldbank.org
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This article has undergone plagiarism screening and double-blind peer review. Editorial policies have been followed. Authors retain copyright under CC BY-NC 4.0 license. The research complies with ethical standards and institutional guidelines.
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