Hospitals worldwide share common challenges in finding the optimal number of patient beds in advance, which is referred to as the bed capacity management problem. Effective management cannot be achieved without an appropriate understanding of the stochastic nature of patient demands. In light of the widespread usage of newsvendor models in inventory management and the increasingly available operational data, we propose a data-driven approach to tackling the supply-demand matching problem under uncertainty, factoring in the observation that daily hospitalization demands are not independent and identically distributed. We develop forecast-based newsvendor models that use autoregressive integrated moving average (ARIMA) to make predictions, and determine the optimal bed capacity during the designated forecast periods. The performance of this approach is tested using real-world data from the West China Hospital. Our analysis affirms the superiority of the forecast-based models in practical settings and further enlightens the situations where forecast might not be effective - when the normality assumption of the noise distribution does not strictly hold, the empirical distribution model can be a computationally cost-effective choice.
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