1. Conduct capacity and utilization analysis (using the data provided in the last page) and provide your own interpretation of Morrisons production capacity utilization.

Exhibit 3: Monthly Units Forecast, Planned, and Actual Output, 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Pharmaceutical Line Forecast Aggregate production plan Actual 10,750 15,357 14,419 7,679 15,357 12,722 9,214 11,518 16,115 7,679 15,357 16,115 23,804 15,357 10,178 18,429 11,518 11,874 10,750 11,518 11,874 14,589 15,357 13,570 16,893 15,357 11,026 13,054 15,357 16,963 17,661 15,357 14,419 29,179 15,357 15,267 179,680 172,769 164,542 Retail Line Forecast Aggregate production plan Actual 5,953 5,177 4,409 5,694 6,471 6,224 8,800 6,471 8,039 8,541 6,471 6,224 9,836 9,059 5,964 16,306 11,647 14,004 11,130 5,177 2,334 5,694 9,059 8,039 8,800 9,059 7,002 14,753 12,942 12,448 10,871 14,236 14,004 19,412 19,412 21,005 125,792 115,180 109,695 Note: Figures represent the number of smart label rolls (1,000 labels per roll) 274,237 Actual output per yea machine capacity production time per month 1 machine produces 20,000 units/hr 8 hr shift * five days a week * 4 weeks = 160 hours/month Monthly Capacity (rolls) = Monthly capacity/machine (rolls)= 4 "personalization" machines (rolls)= 32,000 3,200 12,800 Total annual capacity (rolls)= 384,000 Exhibit 3: Monthly Units Forecast, Planned, and Actual Output, 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Pharmaceutical Line Forecast Aggregate production plan Actual 10,750 15,357 14,419 7,679 15,357 12,722 9,214 11,518 16,115 7,679 15,357 16,115 23,804 15,357 10,178 18,429 11,518 11,874 10,750 11,518 11,874 14,589 15,357 13,570 16,893 15,357 11,026 13,054 15,357 16,963 17,661 15,357 14,419 29,179 15,357 15,267 179,680 172,769 164,542 Retail Line Forecast Aggregate production plan Actual 5,953 5,177 4,409 5,694 6,471 6,224 8,800 6,471 8,039 8,541 6,471 6,224 9,836 9,059 5,964 16,306 11,647 14,004 11,130 5,177 2,334 5,694 9,059 8,039 8,800 9,059 7,002 14,753 12,942 12,448 10,871 14,236 14,004 19,412 19,412 21,005 125,792 115,180 109,695 Note: Figures represent the number of smart label rolls (1,000 labels per roll) 274,237 Actual output per yea machine capacity production time per month 1 machine produces 20,000 units/hr 8 hr shift * five days a week * 4 weeks = 160 hours/month Monthly Capacity (rolls) = Monthly capacity/machine (rolls)= 4 "personalization" machines (rolls)= 32,000 3,200 12,800 Total annual capacity (rolls)= 384,000