Production and Operations Management

Name: Ahmad Mubarak

Roll No. BBHM-F19-030

Submitted to:
Sir Ahmed Bilal

  
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. 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.