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AE had the following three options to increase capacity: expand current facility, new plant alongside the existing plant, and new plant in a different location.

  • AE had the following three options to increase capacity: expand current facility, new plant alongside the existing plant, and new plant in a different location. Analyze the pros and cons of each option using a table format.
  • AE needed to decide whether it should havefocusedoperations dedicated to the manufacturing of photoresist imaging film or moregeneral-purposeoperations that can be used to produce other types of products as well. Analyze these two options for AE based on the given information in the case. What are the pros and cons of each type of operation?
  • What are the benefits and disadvantages of each of the four given options in the case for PhanChem's location? PhanChem is AE's customer.
  • Explain two pieces of missing information in th case that you wish you had for your analysis. How would those affect your analysis?
  • Do you agree with all of the decisions that were made in the case? What other recommendations (e.g. about location, flexibility, timing, relationships, etc.) do you have for Aarens Electronics and Phanchem?

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Aarens Electronics Capacity Expansion Options Option Pros Cons Expand Current Facility Lower upfront cost Leverage existing infrastructure and staff knowledge Minimize disruption to production Limited ... blur-text-image

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