Perform a dea evaluation for this set of units

Assignment Help Management Information Sys

Reference no: EM131163804

DEA Efficiency with Side Constraints Review Exercise 5.5. After looking at the analysis, your corporate client proposes a refinement. Since the corporation has emphasized market share in other divisions, the following constraint is suggested: the virtual Exercise :

Evaluating Restaurant Efficiency Celia's Tacqueria is a chain of five Mexican restaurants in Florida. A DEA evaluation is being conducted to make comparisons of the different locations. Input measures for the restaurants include weekly hours of operation, fulltime 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 Table.

(a) Perform a DEA evaluation for this set of units, listing the efficiency and the virtual outputs for each of restaurants.

(b) For each of the inefficient units, find the reference set and calculate the inputs and outputs for a corresponding HCU.

Table . Inputs and Outputs for Five Restaurants

Restaurant	Input measures
Restaurant	Hours of operation	Fit staff	Supplies ($)
Jacksonville	96	16	850
Daytona	110	22	1400
Gainesville	100	18	1200
Ocala	125	25	1500
Orlando	120	24	1600
	Output measures
	Weekly	% Market	% Growth
Restaurant	profit ($)	share	rate
Jacksonville	3800	25	8.0
Daytona	4600	32	8.5
Gainesville	4400	35	8.0
Ocala	6500	30	10.0
Orlando	6000	28	9.0

output for market share should be at least 150 percent of the virtual output from either profit or growth.

(a) With the side constraints added, calculate the efficiencies of the five restaurants.

(b) What are the advantages and disadvantages of using the side constraint?

Reference no: EM131163804

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