Question
The Ranch House, Inc., operates five fast-food restaurants. Input measures for the restaurants include weekly hours of operation, full-time equivalent staff, and weekly supply expenses.
The Ranch House, Inc., operates five fast-food restaurants. Input measures for the restaurants include weekly hours of operation, full-time equivalent staff, and weekly supply expenses. Output measures of performance include average weekly contribution to market share, and annual growth rate. Data for the input and output measures are shown in the following tables:
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 restaurant? 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 itsefficiency?
Restaurant Bardstown Clarksville Jeffersonville New Albany St. Matthews Restaurant Bardstown Clarksville Jeffersonville New Albany St. Matthews Input Measures FTE Staff Hours of operation Supplies (S) 850 16 110 1400 18 1200 100 1500 125 120 24 1600 Output Measures Weekly Profit Market Share Growth Rate $3800 80 $4600 8.5 $4400 80 $6500 100 $6000 9.0Step by Step Solution
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