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When firm is capable to move to an assemble? to? Order ability from a make? to? Stock approach, there can be substantial reduction in number of things that should be tracked and stored. For instance, the Northland Computer Shop had decided to stop stocking assembled computers and moved to assemble? To order approach. Northland even invited customers to the work area to observe their computer being assembled, a grand customer relations ploy. The company estimated that there were 7 hard disk choices, 6 mother boards (comprising the processor), 5 CD/DVD alternatives, three operating systems, and 4 other options. If it costs $10 per item to make an estimate each week, what is the weekly savings from forecasting just the constituents and options as compared to potential number of finished products?

Operation Management, Management Studies

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