The Ranch House, Inc., operates five fast-food restaurants. Input measures for the restau- rants include weekly hours of operation, full-time equivalent staff, and weekly supply expenses. Output measures of performance include average weekly contribution to profit, market share, and annual growth rate. Data for the input and output measures are shown in the following tables:
|
Restaurant
Bardstown
|
Hours of Operation
96
|
FTE Staff
16
|
Supplies ($)
850
|
|
Clarksville
|
110
|
22
|
1400
|
|
Jeffersonville
|
100
|
18
|
1200
|
|
New Albany
|
125
|
25
|
1500
|
|
St. Matthews
|
120
|
24
|
1600
|
|
Restaurant
Bardstown
|
Weekly Profit
$3800
|
Market Share (%)
25
|
Growth Rate (%)
8.0
|
|
Clarksville
|
$4600
|
32
|
8.5
|
|
Jeffersonville
|
$4400
|
35
|
8.0
|
|
New Albany
|
$6500
|
30
|
10.0
|
|
St. Matthews
|
$6000
|
28
|
9.0
|
a. Develop a linear programming model that can be used to evaluate the performance of the Clarksville Ranch House restaurant.
b. Solve the model.
c. Is the Clarksville Ranch House restaurant relatively inefficient? Discuss.
d. Where does the composite restaurant have more output than the Clarksville restau- rant? How much less of each input resource does the composite restaurant require when compared to the Clarksville restaurant?
e. What other restaurants should be studied to find suggested ways for the Clarksville restaurant to improve its efficiency?