Explain when a firm is able to move to an assemble, Operation Management

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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? To order 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?


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