Reference no: EM132008183

When do you need to buy more capacity?

Question options:

1) When you plan to add a product or move a product from one segment to another

2) You buy capacity when your current capacity at 160% utilization (1st shift capacity * 1.6) cannot meet your current forecast * market growth rate

3) You buy capacity when your current capacity at 180% utilization - (1st shift capacity + 2^nd shift capacity)* 1.8 - cannot meet your current forecast * market growth rate

4) You buy capacity when your current capacity at 180% utilization (1st shift capacity * 1.8) cannot meet your current forecast * market growth rate

5) When your product gross margin is negative and you need to generate more revenue