ACCTG 323 QUESTION 3: NZ Post provides postal and banking services in the form of Kiwibank throughout New Zealand. The senior management team are looking at some different methods of performance analysis and have asked your advice. You have suggested the Lee method and Data Envelopment Analysis (DEA) and they are very interested in both methods. They have provided you with some basic measures of daily performance for five of their stores in Auckland being the number of post and bank customers per full time equivalent (FTE) staff member. No. of Post No. of Bank Customers per Customers per Shop Staff FTE Staff FTE A 500 300 B 250 250 C 200 400 D 450 150 m 600 150 Required: a) Describe how the Lee method works and using a performance measurement index of 1 to 10, calculate the performance scores for each shop assuming: i. A 70% weight on Post customers and 30% on Bank customers; ii. A 30% weight on Post customers and 70% on Bank customers (14 marks) 450 400 350 300 OA 250 O B Bank Customers 200 150 OD 100 50 0 0 200 400 600 800 Post Customers b) Using this graph, explain how DEA identifies best practice and efficiency scores. Estimate the efficiency scores for each store visually using the graph and for inefficient stores, identify their peer stores for benchmarking purposes. Using your estimated scores, calculate the target values for the inefficient stores. (10 marks) Page 4 of 5 ACCTG 323 QUESTION 3 continued: c) Compare the results of your two methods and explain how and why they differ. Explain to NZ Post the main relative advantages and disadvantages of each method and which method you would recommend. (6 marks) (Total for Question: 30 marks)