An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 1

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 profit, 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 he 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 its efficiency?