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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

Restaurant

Bardstown

Weekly Profit

$3800

Market Share (%)

25

Growth Rate (%)

8.0

Clarksville

$4600

32

8.5

Jeffersonville

$4400

35

8.0

New Albany

$6500

30

10.0

St. Matthews

$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?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91591869

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