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Question 6.1: Capacity Management Strategy (25-30 marks)

Challenge Area: Operational Efficiency (Single facility, 4 production lines)

Format: Investment Appraisal Report

Requirement: "MC is experiencing 15% annual growth but approaching facility capacity. Evaluate options including facility expansion, second location, or outsourced production. Include NPV calculations and non-financial factors."

Professional Skills:

  • Analysis (financial modeling)
  • Evaluation (option comparison)
  • Commercial Acumen (growth sustainability)

Time Allocation: 67.5 minutes (including 7-8 minutes planning)


View Sample Answer