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?

Input Measures Restaurant Bardstown Clarksville Jeffersonville New Albany St. Matthews Hours of Operation 96 I10 100 125 120 FTE Staff Supplies (S) 850 1400 1200 1500 1600 16 18 25 24 Output Measures Restaurant Bardstown Clarksville Jeffersonville New Albany St. Matthews Weekly Profit $3800 Market Share (%) 25 32 35 30 28 Growth Rate (%) 8.0 8.5 8.0 10.0 9.0

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