Renata owns a local bakery store that produces and sells cakes, pies, and cookies. She determined that collectively, she has a design capacity of 200 units (combination of cakes, pies, and cookies) per day but an effective capacity of 150 units per day. She is now in the middle of a busy holiday season, and her daily output has been running at 175 units per day. Compute her design and effective capacity utilization measures. 

Renata is asking you for help in determining what she should do.  Answer the following questions using the data you calculated in regards to her capacity:

1. Does Renata have enough capacity to meet the holiday demand?
2. 
   
3. Should she consider expanding, contracting, or leaving her bakery the way it is?

Answer rating: 100% (QA)

To determine Renatas design and effective capacity utilization measures we can use the following formulas Design Capacity Utilization Daily Output Des... View the full answer