What factors should be considered before increasing weekly processing capacity?

• A. Weather conditions and holidays only.
• B. Demand, e-waste supply, profitability.
• C. Only marketing budget.
• D. Only production labor skills.

Answer: (B)

Before increasing weekly processing capacity, you need to check three things: whether there is enough demand to justify more output, whether you can source enough input material (e-waste) to feed the higher capacity, and whether the move will be financially worthwhile. If demand is uncertain or low, expanding capacity risks paying for more production with little sales. If you can’t secure a steady supply of e-waste, the extra capacity would sit idle or cause bottlenecks elsewhere. And profitability ties it together: you must compare the costs of expanding (equipment, installation, maintenance, labor) with the expected revenues and margins to see if the investment makes sense. Weather and holidays don’t address sustained capacity needs; marketing budget affects demand expectations but isn’t a direct input into how much you should produce; and focusing only on labor skills ignores the crucial inputs and market viability.