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The Ranch House, Inc., operates five fast-food restaurants. Input measures for the restau- rants include weekly hours of operation, full-time equivalent staff, and weekly supply expenses. Output measures of performance include average weekly contribution to profit, market share, and annual growth rate. Data for the input and output measures are shown in the following tables:
Restaurant
Bardstown
Hours of Operation
96
FTE Staff
16
Supplies ($)
850
Clarksville
110
22
1400
Jeffersonville
100
18
1200
New Albany
125
25
1500
St. Matthews
120
24
1600
Weekly Profit
$3800
Market Share (%)
Growth Rate (%)
8.0
$4600
32
8.5
$4400
35
$6500
30
10.0
$6000
28
9.0
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 restau- rant? 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 its efficiency?
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