A manufacturer of printed circuit boards has a design capacity of 1,000 boards per day. The effective capacity, however, is 700 boards per day.
Recently the production facility has been producing 950 boards per day.
1. What is the design capacity utilization measure?
2. What is the effective capacity utilization measure?
3. Refer to your answers to questions 1 and 2 above, what can you conclude?
a- The manufacturer needs to expand immediately.
b- The manufacturer does not need to expand immediately.
c- The manufacturer needs to increase output.
d- The manufacturer does not have sufficient capacity to meet demand.
e- The manufacturer needs to reduce its effective capacity.