Expanding Manufacturing Efficiency Returning to the firms you studied in the previous exercise, you discover that they now make two products-apple juice and apple sauce. The firms still effectively use only one important resource, which is the apples grown in their own orchards, but they have different marketing strategies and hence their product mixes differ. The relevant data are shown in the table below.
|
|
Acres
|
Juicc
|
Sauce
|
|
Firm 1
|
100
|
10
|
31
|
|
Firm 2
|
110
|
15
|
25
|
|
Firm 3
|
122
|
20
|
30
|
|
Firm 4
|
115
|
23
|
23
|
|
Firm 5
|
96
|
30
|
20
|
(a) Perform a DEA evaluation for this set of firms, listing the efficiency for each firm.
(b) For each of the inefficient units, find the reference set and calculate the inputs and outputs for a corresponding HCU.
(c) Compare the results with the analysis of the branch bank example in the chapter. What are the differences in the given data? What are the differences in results?