Production and Operations Management

Name: Ahmad Mubarak

Roll No. BBHM-F19-030

Submitted to:
Sir Ahmed Bilal

  
Market requirement
As we can say that the market sale is not much right now and demand is not
Much high and company is already investing on modifying lerentyl.
Operation compatible
Chemling machine already installed if they got another one then may be it will
benefit them they have six technique already have for chemling machine but if
they buy AFU then they have to hire skillful technicians and it also bring cost.
Financial Evaluation
Depending on the financial situation, the company is already taking out loans, so
buying AFU will increase their expenses as the company cannot afford the heavy
cost of buying AFU. Buying these machines also requires skilled labor and comes
with cost.
Decision:
It is not a good decision to buy AFU because there are three Chemling
machines already installed which satisfied the customer's demand as the demand
is not much high that's why there is no need to increase the firm's capacity and
investment is also done on the other part of the company.