Reference no: EM131163786
DEA with Cross-Efficiencies Review Exercise 5.5. After looking at the analysis, your corporate client proposes yet another refinement to break ties in the efficiency ratings. The evaluation of the kth DMU produces a set of "optimal prices" that are as favorable as possible to unit k. Suppose we call these "set k prices." Now, to evaluate DMU k, compute the value of its efficiency (output value divided by input value) under each of the price sets (set 1 prices through set 5 prices, in this case). Then, average the five efficiency values. This average value is called the cross-efficiency.
(a) Rank the DMUs based on cross-efficiency.
(b) What are the advantages and disadvantages of using the cross-efficiency measure?
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 5.3.
(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 5.3. Inputs and Outputs for Five Restaurants
|
Restaurant
|
|
Input measures
|
|
|
Hours of
operation
|
FIE
staff
|
Supplies
(S)
|
|
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 (S)
|
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
|
|
Discuss how you would use an opinion editorial
: Given the power of the media, discuss how you would use an opinion editorial, a personal interview, websites, texting, Facebook, Twitter, and/or blogs to influence public opinion relative to your policy priority childhood obesity. What issues abou..
|
|
What role does communication play in this scenario
: What approach should a manager take to ensure cooperation rather than resistance? What role does communication play in this scenario
|
|
Central bank reduced real interest rates to zero percent
: In the 1990s and early 2000s, Japan's central bank reduced real interest rates to zero percent, but investment spending did not respond enough to bring the economy out of recession. Japan's experience is an illustration of: Athe crowding-out effect. ..
|
|
What would be different strategies used to maximize revenue
: When you want to evaluate the terminology, what would be the different strategies used to maximize revenue and what would be the ones to maximize profits?
|
|
Rank the dmus based on cross efficiency
: Rank the DMUs based on cross-efficiency. - What are the advantages and disadvantages of using the cross-efficiency measure?
|
|
Ethical issues in information systems
: You may also use the Internet or the Strayer Library to research articles on ethical issues in information systems and choose one (1) ethics issue of interest to you.
|
|
Suppose the nation of arcadia produces only two goods
: Suppose the nation of Arcadia produces only two goods teapots and surfboards if Arcadia produces only teapots it can make 80 per day if Arcadia produces only surfboards it can make 30 per day what is the opportunity cost of one teapot in Arcadia
|
|
Describe four perspectives of personality
: Write a paper about personality. Include the following: Describe four perspectives of personality. Compare three theories of personality development
|
|
What national-international variables affect our economy
: Explain what national/international variables affect our economy and what would you do if you were the CEO of a company (you may use your place of employment) in order to increase efficiency, productivity, and maintain your company's competitiveness ..
|