Thursday, 20 February 2014
When a firm is able to move to an assemble?to?order capability from a
make?to?stock approach, there can be a substantial reduction in the
number of things that
must be tracked and stored. For example, the Northland
Computer Shop had decided to stop stocking assembled computers and moved
to an assemble?toorder approach.
Northland even invited customers to the work area to see
their computer being assembled, a great customer relations ploy. The
company estimated that there were
seven hard disk choices, six mother boards (including
the processor), five CD/DVD alternatives, three operating systems, and
four other options. If it costs $10
per item to make a forecast each week, what is the
weekly savings from forecasting just the components and options as
compared to the potential number of finished
products?
.Click here for more on this paper.......
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