DEA Efficiency with an Additional Constraint Review Exercise. Add constraints that require virtual outputs of at least 10 percent.
(a) With the additional constraints, calculate the efficiencies of the restaurants. Comparing the original analysis, what patterns do you see?
(b) Repeat the analysis with a minimum of 20 percent on the virtual outputs.
(c) What are the advantages and disadvantages of using the additional constraint?
Exercise:
Evaluating Restaurant Efficiency Celia's Tacqueria is a chain of five Mexican restaurants in Florida. A DEA evaluation is being conducted to make comparisons of the different locations. Input measures for the restaurants include weekly hours of operation, fulltime 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 Table.
(a) Perform a DEA evaluation for this set of units, listing the efficiency and the virtual outputs for each of restaurants.
(b) For each of the inefficient units, find the reference set and calculate the inputs and outputs for a corresponding HCU.
Table. Inputs and Outputs for Five Restaurants
|
Restaurant
|
Input measures
|
|
Hours of operation
|
FTE staff
|
Supplies
($)
|
|
Jacksonville
|
96
|
16
|
850
|
|
Daytona
|
110
|
22
|
1400
|
|
Gainesville
|
100
|
18
|
1200
|
|
Ocala
|
125
|
25
|
1500
|
|
Orlando
|
120
|
24
|
1600
|
|
|
Output measures
|
|
|
Weekly profit ($)
|
% Market share
|
% Growth rate
|
|
Restaurant
|
|
Jacksonville
|
3800
|
25
|
8.0
|
|
Daytona
|
4600
|
32
|
8.5
|
|
Gainesville
|
4400
|
35
|
8.0
|
|
Ocala
|
6500
|
30
|
10.0
|
|
Orlando
|
6000
|
28
|
9.0
|