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urgent!! ZNA bank has five branches in Victoria East. Table 1 gives the average number of hours (in hundreds) of staff time used weekly, to
urgent!!
ZNA bank has five branches in Victoria East. Table 1 gives the average number of hours (in hundreds) of staff time used weekly, to manage accounts (in thousands) at the branch. Branch location Caulfield Clayton Glen Iris Malvern Staff time 0.5 2 4 5 Number of accounts 0.5 2 2.5 2 (a) Assume that the bank branches operate under constant returns to scale technology. What is the target output you propose for the third ranked (in terms of relative performance) bank branch to achieve Pareto efficiency while maintaining its current level of input? (b) Assume that the bank branches operate under variable returns to scale technology. What is the target output you propose for the fourth ranked (in terms of relative performance) bank branch to achieve Pareto efficiency while maintaining its current level of input? Give reasons for your answer. Hint: You can answer these questions without any mathematical formulation and using SOLVER. It is easier to use the graphical method to answer this question. In part (a), you are expected to rank DMUs based on output-oriented CRS efficiency scores. In part (b), you are expected to rank DMUs based on output-oriented VRS efficiency scores. ZNA bank has five branches in Victoria East. Table 1 gives the average number of hours (in hundreds) of staff time used weekly, to manage accounts (in thousands) at the branch. Branch location Caulfield Clayton Glen Iris Malvern Staff time 0.5 2 4 5 Number of accounts 0.5 2 2.5 2 (a) Assume that the bank branches operate under constant returns to scale technology. What is the target output you propose for the third ranked (in terms of relative performance) bank branch to achieve Pareto efficiency while maintaining its current level of input? (b) Assume that the bank branches operate under variable returns to scale technology. What is the target output you propose for the fourth ranked (in terms of relative performance) bank branch to achieve Pareto efficiency while maintaining its current level of input? Give reasons for your answer. Hint: You can answer these questions without any mathematical formulation and using SOLVER. It is easier to use the graphical method to answer this question. In part (a), you are expected to rank DMUs based on output-oriented CRS efficiency scores. In part (b), you are expected to rank DMUs based on output-oriented VRS efficiency scoresStep by Step Solution
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