DEA Analysis of Modell's the Case Study

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6)

Several of the components examined in the DEA study seem to be correlated with higher levels of productivity, though without more in-depth statistical analysis it is difficult to say to what degree these correlations exist. Footwear sales seem to have a generally positive relationship with overall productivity, with MCI (the lowest performing store by this measure) actually showing negative performance in the footwear category and with many higher performers posting higher numbers of performance in footwear, although there are many stores in the middle of the pack that also have high footwear sales. Both regular time and over time numbers are also generally positively correlated with increased productivity, meaning that more labor led to more sales. As intuitive as this might seem, it is clearly something that is not fully recognized throughout the Modell's chain and that this analysis will hopefully bring to the attention of store managers and corporate executives that can address the problem.

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7)

Managerial implications of this preliminary and cursory analysis are quite clear, though they should be supported by further analysis before being acted upon. Hiring should be made a priority for stores with low sales numbers, and although it might at first be difficult to justify the higher expenditure for lower conversion rates, this will hopefully be turned around within six months of implementing a hiring program. Footwear sales should also be focused on as a more efficient means of generating sales, and given the overall correlation between general staffing levels, it is recommended that footwear departments be especially….....

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