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You are the CEO for a radiology imagining center that has seen a 10 percent drop in utilization over the past year. Utilization is expected to drop another 10 percent for each of the next two years, but in the third year your forecasted demand will increase 5 percent per year indefinitely. Your current staffing level will result in a $20,000 loss next year and a $40,000 loss the following year. What are your options?

Operation Management, Management Studies

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