Service Appointment Scheduling with Walk-In, Short-term, and Traditional Scheduling
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1 Service Appointment Scheduling with Walk-In, Short-term, and Traditional Scheduling 1 Decision Sciences Institute Annual Meeting New Orleans November 16, 2009 Dr. Linda R. LaGanga Director of Quality Systems Mental Health Center of Denver Denver, CO USA Prof. Stephen R. Lawrence Leeds School of Business University of Colorado Boulder, CO USA Linda LaGanga and Stephen Lawrence
2 Agenda 1. Problem Setting 2. Open Access and Walk-in Models 3. Computational Results 4. Managerial Implications 5. Future Research and Conclusions 2
3 1. Problem Setting 3
4 Objectives of Research Using what we ve learned in healthcare clinics Traditionally scheduled (TS) clinic Some patients do not show for scheduled appointments TS clinic wishes to increase scheduling flexibility Some capacity allocated to open access (OA) appointments, OR Some capacity allocated to walk-in traffic Balance needs of clinic, providers, and patients Study impact of open access and walk-in traffic When is open access or walk-in traffic beneficial? What mix of TS, OA, and WI traffic is best? What are trade-offs of TS, OA, and WI on clinic performance? 4
5 Optimize customer flow in service operations Restaurants Haircuts Automobile repair, maintenance, inspection Tax preparation Legal consultation Counseling Any real-time service provided directly to the customer or performed on their property, usually at the provider s location
6 2. Appointment Scheduling Model 6 20% 15% Probability 10% 5% 0% Number Waiting (k)
7 Assumptions A service operation has N service slots Each slot is d time units long (deterministic) A service session then is D=Nd time units in duration One or multiple undifferentiated providers P Clients serviced by any available provider Customers can arrive in one of three ways 7 Binomial traditional appointments show with probability σ Poisson open access call-ins with mean ϕ (per day) Poisson walk-ins with mean λ (per appointment slot) Arrivals have equal service priority (undifferentiated)
8 Model flexibility Characteristics of Model Appt show rates σ j can vary by service slot j (time of day) Open access call-in rate ϕ can vary by day. Walk-in rate λ j can vary by treatment slot j Number of providers P j can vary by slot j Any arrival distribution can be accommodated Customer arrivals Customers are only seen at the start of a service slot (early arrivals wait for next slot without cost) Customers are seen in order of arrival (FCFS) 8
9 Arrival of Scheduled Appointments Appointment arrivals are binomially distributed s j customers scheduled for treatment slot j Probability of a customer showing is s a j s j actually arrive in slot j Binomial distribution has no right tail ( ) j k ;, = ( 1 ) ba s j j s a sj σ σ σ j a j Density f(x) Number of Patients s j = 4, σ = 70%
10 Arrival of Walk-In Customers Walk-ins arrive at some percentage of service capacity Walk-in arrivals are Poisson distributed Walk-ins arrive at rate λ per slot w j actually walk-in in slot j k λ ( ; λ ) p w j = λ w e j! 10 Density f(x) Poisson distribution has a long right tail Number of Patients λ = 1
11 Arrival of Open Access Customers 11 Open access (OA) calls arrive at a mean rate equal to some fraction of service capacity (e.g., 50%) Customers call for a same-day appointment Number of OA customers calling on a particular day is Poisson distributed with mean ϕ Turned away if no open slots remain that day Perhaps make an appointment on another day OA customers always show for appointments
12 Probability of k Clients Waiting Probability of k Binomial TS New new arrivals in appointment WI or OA 12 slot j Elements of θ (r j ) can arrivals be calculated arrivalsas Probability of k None k waiting Waiting plus waiting at start of plus k arrivals arrivals = k slot j (, ) p ( ) α = b s σ λ jk ij k 1 i= 0 k = + θ θ α θ α j+ 1, k j,0 j+ 1, k j, i+ 1 j+ 1, k i i= 0 α jk = probability of k clients arriving for service at the start of appointment slot j θ jk = probability of k clients waiting for service at start of appointment slot j
13 Relative Benefits and Penalties π = Benefit of seeing additional customer ω = Penalty for customer waiting τ = Penalty for service operation overtime Numéraire of π, ω, and τ doesn t matter Ratios (relative importance) are important Allow linear, quadratic, and mixed (linear + quadratic) costs 13
14 Linear & Quadratic Objectives Linear Utility Function N k ˆ ω U A penalties k i 1 k Aˆ during Client waiting ( S) = π ˆ θ + ( ) θ + 1, τ θ + 1, Benefit from clients served Client waiting Quadratic Utility Function jk N k N k j= 1 k k i= 1 k normal service ops N k ˆ ( ) ˆ ω ( ) ( ) 2 2 U S = πa 2k 1 θ + i 1 θ τ k θ Aˆ 14 penalties during clinic overtime Service op overtime penalties jk N+ 1, k N+ 1, k j= 1 k k i= 1 k
15 Heuristic Solution Methodology 1. Gradient search Increment/decrement appts scheduled in each slot Choose the single change with greatest utility Iterate until no further improvement found 2. Pairwise interchange Exchange appts scheduled in all slot pairs Choose the single swap with greatest utility Iterate until no further improvement found 3. Iterate (1) and (2) while utility improves 4. Prior research: Optimality not guaranteed, but almost always obtained 15
16 3. Computational Results 16 Net Utility per Provider Net Utility per Provider Walk-ins Walk-ins Open Access Open Access % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Open Access (OA) Traffic (% of capacity) Open Access (OA) Traffic (% of capacity)
17 Computational Trials 44 sample problems solved Session size N = 12 Appointment show rate σ = 70% Number of providers P = {1, 2, 4, 8} OA call-in rate λ = {0%, 10%, 100%} capacity With P = 4 and N = 12, then ϕ = 24 is 50% of capacity Walk-in rate λ = {0%, 10%, 100%} of capacity With P = 4, then λ = 2 is 50% of capacity Quadratic costs 17 Parameters π =1.0, ω =1.0, τ =1.5
18 50% Walk-Ins (λ = 0.5) N=12, P=1, σ =0.7, π =1.0, ω =1.0, τ =1.5 (quadratic) Number of Appointments Number of Appointments Appointment Slot Appointment Slot
19 Customers Serviced 19 Patients Seen per Provider Patients Seen per Provider Walk-ins Walk-ins Open Access Open Access Traditional Scheduling 2 Providers (P=2) 2 Providers (P=2) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% OA or WI Traffic (% of capacity) OA or WI Traffic (% of capacity) N=12, P=1, σ =0.7, π =1.0, α =1.0, ω =1.0, τ =1.5
20 Customer Waiting Time 20 Expected Waiting Time / Patient Expected Waiting Time / Patient Walk-ins Walk-ins Open Access Open Access Traditional Scheduling 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% OA or WI Traffic (% of capacity) OA or WI Traffic (% of capacity) N=12, P=1, σ =0.7, π =1.0, α =1.0, ω =1.0, τ =1.5
21 Service Operation Overtime 21 Expected Provider Overtime (d time units) Expected Provider Overtime (d time units) Walk-ins Walk-ins Open Access Open Access Traditional Scheduling % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% OA or WI Traffic (% of capacity) OA or WI Traffic (% of capacity) N=12, P=1, σ =0.7, π =1.0, α =1.0, ω =1.0, τ =1.5
22 Provider Utilization 22 Expected Provider Utilization Expected Provider Utilization 90% 90% 85% 85% 80% 80% 75% 75% 70% 70% 65% 65% 60% 60% Walk-Ins Walk-Ins Open Acess Open Acess 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% OA or WI Traffic (% of capacity) OA or WI Traffic (% of capacity) Traditional Scheduling N=12, P=1, σ =0.7, π =1.0, α =1.0, ω =1.0, τ =1.5
23 Net Utility 23 Net Utility per Provider Net Utility per Provider Traditional Scheduling Walk-ins Walk-ins Open Access Open Access % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Open Access (OA) Traffic (% of capacity) Open Access (OA) Traffic (% of capacity) N=12, P=1, σ =0.7, π =1.0, α =1.0, ω =1.0, τ =1.5
24 % of Best Utility 24 Utility (% of maximum) Utility (% of maximum) 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% Walk-ins Walk-ins Open Access Open Access Traditional Scheduling 30% 30% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% OA or WI Traffic (% of capacity) OA or WI Traffic (% of capacity) N=12, P=1, σ =0.7, π =1.0, α =1.0, ω =1.0, τ =1.5
25 4. Managerial Implications 25
26 Managerial Implications TS appointments provide better service utility than does WI traffic or OA call-ins Any WI or OA traffic causes some decline in utility 26 An all-wi or all-oa service operation performs worse than any service operation with some TS appointments Even a relatively small percentage of scheduled appointments can significantly improve service operation utility Degree of improvement depends on number of providers A mix of TS appointments with some OA or WI traffic does not greatly reduce service operation performance (utility)
27 Insights from the Model Loss of utility with WI traffic is due to the long righttail of Poisson distribution Excessive customer waiting & service operation overtime Loss of utility with OA traffic is due to uncertainty about number of OA call-ins TS appts reduce customer waiting and service operation overtime Binomial distribution has truncated right tail 27 Multiple providers improves service operation utility Portfolio effect variance reduction
28 Managerial Caveats Results (to date) are for reasonable utility parameters Sensitivity analysis currently under way Attractiveness of WI and OA traffic may improve if they have a higher utility benefit than do scheduled appointments (π WI > π TS ; π OA > π TS ) Currently under investigation 28
29 5. Contributions & Future Research 29
30 Contributions of Research Analytic yield management model for health care clinics with OA traffic First to examine analytically examine combinations of TS and OA Fast and effective near-optimal solutions Demonstrate the trade-offs of OA traffic Scheduled appointments provide higher utility Even some appointments improve utility of an all OA clinic 30
31 Future Work 31 Determine sensitivity of results Utility parameters, number of slots, show rates, linear costs Show rates, walk-in rates, and providers vary by time of day Extend model Different utility parameters for appointments and walk-ins Walk-ins seen before appointments and vice versa Stochastic service times
32 Service Policies and Alternate Configurations Use of Flexible Capacity 32 Service downgrade or alternatives Shorter service Restaurant: Seating at the bar Compensation or discounts for excessive customer waiting Waitlists and Flexible Customer Pool
33 Questions? Comments? Service Appointment Scheduling with Walk-In, Short-term, and Traditional Scheduling 33 Decision Sciences Institute Annual Meeting New Orleans November 2009 Dr. Linda R. LaGanga Director of Quality Systems Mental Health Center of Denver Denver, CO USA Prof. Stephen R. Lawrence Leeds School of Business University of Colorado Boulder, CO USA Linda LaGanga and Stephen Lawrence
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