Question
Use the data envelopment analysis to measure the relative efficiency of the three fast food restaurant franchises located in three different cities in Kenya operated
Use the data envelopment analysis to measure the relative efficiency of the three fast food restaurant franchises located in three different cities in Kenya operated by the same owner. The owner wants to identify the relatively inefficient operations and try to improve their relative efficiency scores. The relevant information is given in the table below:
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| Restaurants |
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Input measures | A | B | C |
Weekly hours of operation | 8 4 | 70 | 88 |
Daily number of employees | 6 | 8 | 7 |
Daily cost of ingredients () | 2000 | 4000 | 3000 |
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Output measures |
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Weekly profit () | 4000 | 3000 | 2500 |
Number of customers served/week | 1500 | 1000 | 1200 |
City fast food market share (%) | 30 | 20 | 15 |
Use DEA and identify the most efficient and inefficient fast food restaurants
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