International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Assessing the Capacity Strategic Options on Capacity Utilisation of Manufacturing Firms in Rivers State, Nigeria
Karibo Benaiah Bagshaw

This study examined capacity strategies that enhance capacity utilization with sample size of 33 manufacturing firms in Rivers State, Nigeria. The data was collected through the use of 23-item ICAM Questionnaire and was analyzed with the aid of SPSS, version 17. It was found that, constant product output and constant direct labour has a strong positive relationship with capacity utilization with correlation co-efficient (r) =0.64, and (r) =0.813 respectively; that positive relationship exist between backorder and capacity utilization with correlation coefficient (r) = 0.781. It was therefore concluded that, capacity strategy has influence on firm’s capacity utilization rate. The capacity level selected also, has a critical influence on the firm’s response rate in meeting demand, cost structure, inventory policies, and management/ staff support requirements. The study recommends that, manufacturing firms should employ level capacity management strategies to ensure that they meet customers’ demand, while the firms should focus on inventory levels of finished products, capacity utilization, maximizing employee productivity and create value for customers.

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