., manufactures potentiometers, devices that adjust electrical resistance. Potentiometers are used in switches and knobs, for example, to control the volume on a radio or to raise or lower the lights using a dimmer switch. Currently, all parts necessary for the assembly of the products are produced internally. The firm, in operation for five years, has a single plant located in Wichita, Kansas. The facilities for the manufacture of potentiometers are leased, with five years remaining on the lease. All equipment is owned by the company. Because of increases in demand, production has been expanded significantly over the five years of operation, straining the capacity of the leased facilities. Currently, the company needs more warehousing and office space, as well as more space for the production of plastic moldings.
The current output of these moldings, used to make potentiometers, needs to be expanded to- accommodate the increased demand for the main product.