An investor owns twelve Subway franchises and wants to evaluate the efficiency of each in order to make a decision of either selling the least efficient or investing more capital to increase its efficiency. The twelve restaurants are in different areas of Philadelphia, but all have the same overall market.

Use information below to answer the following questions.

Location	Advertising	Labor cost	Mortgage	Profit	Customer Satisfaction
1	1500	12000	800	85000	8
2	2500	10000	800	65000	9
3	1000	15000	700	60000	6
4	1000	10000	900	50000	6
5	2000	8000	600	50000	6
6	2200	7000	1000	80000	6
7	1500	13000	1000	90000	7
8	2800	10000	800	50000	9
9	1100	14000	900	40000	8
10	1700	13000	700	40000	9
11	1000	12000	1100	50000	7
12	1800	15000	1000	55000	9

QUESTION 8 If the LINDO formulation and output of store 4 is shown below, what is the efficiency value of store 4?

Store 4

MAX 50000U1+6U2

S.T.

85000U1+8U2-1500V1-12000V2-800V3

65000U1+9U2-2500V1-10000V2-800V3

60000U1+6U2-1000V1-15000V2-700V3

50000U1+6U2-1000V1-10000V2-900V3

50000U1+6U2-2000V1-8000V2-600V3

80000U1+6U2-2200V1-7000V2-1000V3

90000U1+7U2-1500V1-13000V2-1000V3

50000U1+9U2-2800V1-10000V2-800V3

40000U1+8U2-1100V1-14000V2-900V3

40000U1+9U2-1700V1-13000V2-700V3

50000U1+7U2-1000V1-12000V2-1100V3

55000U1+9U2-1800V1-15000V2-1000V3

1000V1+10000V2+900V3=1

U1 > 0

U2 > 0

V1 > 0

V2 > 0

V3 > 0

OBJECTIVE FUNCTION VALUE

1. 0.9710000

Variable Value Reduced Cost

U1 0.1000000E-05 0.000000

U2 0.1535000 0.000000

V1 0.3776000E-03 0.000000

V2 0.6215000E-04 0.000000

V3 0.1000000E-05 0.000000

Row Slack or Surplus Dual Price

1 0.9710000 1.000000

2 0.000000 0.3243243

3 0.1198000 0.000000

4 0.3295500 0.000000

5 0.2900000E-01 0.000000

6 0.2820000 0.000000

7 0.2657700 0.000000

8 0.2108500 0.000000

9 0.2480800 0.000000

10 0.1836000E-01 0.000000

11 0.2907000E-01 0.000000

12 0.000000 0.4864865

13 0.1764300 0.000000

14 0.000000 0.9729730

15 0.000000 -1891.892

16 0.1534990 0.000000

17 0.3766000E-03 0.000000

18 0.6115000E-04 0.000000

19 0.000000 -81.08108

0 0.971. 1.00 Cannot be determined with the current information. QUESTION 9 4 points Save Answer Which of the following statements is correct about Us and Vs. The values of U1, U2, V1, V2, and V3 are the inputs and outputs of various DMUS The values of U1, U2, V1, V2, and V3 are constant for all DMUS. The values of U1, U2, V1, V2, and V3 are weights assigned by computer each input and output for each DMU. The values of U1, U2, V1, V2, and V3 can be equal to zero. 4 points Save Answer QUESTION 10 In question (9) in order to make store 4 efficient, which stores must be referenced (Benchmarked)? Store 1, Store 2 Store 1, Store 2, Store 7 Store 1, Store 11 Store 7, Store 12, Store 11 QUESTION 11 4 points Save Answer What will be the values of INPUTS for "store 4" if it is made to be efficient? 260.78, 5740.15, 630.50 324.322,5694.0, 793.11 1494.63, 7416.20, 556.21 972.973, 9729.73, 794.59 4 points Save Answer QUESTION 12 What will be the values of OUTPUTS for "Store 4" if it is made to be efficient? 90132.56,9 50000, 6 51891.89,6 50000, 5, 0 0.971. 1.00 Cannot be determined with the current information. QUESTION 9 4 points Save Answer Which of the following statements is correct about Us and Vs. The values of U1, U2, V1, V2, and V3 are the inputs and outputs of various DMUS The values of U1, U2, V1, V2, and V3 are constant for all DMUS. The values of U1, U2, V1, V2, and V3 are weights assigned by computer each input and output for each DMU. The values of U1, U2, V1, V2, and V3 can be equal to zero. 4 points Save Answer QUESTION 10 In question (9) in order to make store 4 efficient, which stores must be referenced (Benchmarked)? Store 1, Store 2 Store 1, Store 2, Store 7 Store 1, Store 11 Store 7, Store 12, Store 11 QUESTION 11 4 points Save Answer What will be the values of INPUTS for "store 4" if it is made to be efficient? 260.78, 5740.15, 630.50 324.322,5694.0, 793.11 1494.63, 7416.20, 556.21 972.973, 9729.73, 794.59 4 points Save Answer QUESTION 12 What will be the values of OUTPUTS for "Store 4" if it is made to be efficient? 90132.56,9 50000, 6 51891.89,6 50000, 5