Question

Discuss the positive relationship between Assembly Warehouse and forecasting/inventory level from a manufacturer's perspective?

Answer 1

Forecasting inventory level is a method which is used to predict required inventory levels for a future time period. It also helps to keep track of sales and demand. It leads to better manage company’s purchase orders. It is an inventory management tool that helps in increase revenue and decrease unnecessary costs.

Assembly warehouse is used to collect goods in order to assemble them into one final product. It transforms goods in warehouse. It orders manufacturer to pick and combine a number of items to produce a final product that remains in the warehouse.

There is a positive relationship between Assembly Warehouse and Forecasting Inventory level from manufacturer’s point of view as it results into faster service, improve cash flow because manufacturer place order on time for required inventory, customers get products easily and on time because customer’s ordered product is available at that time and manufacturer can see and ensure them, accurate inventory forecasting is done, reduces operations costs, it helps to increase customer satisfaction. Both are working effectively with each other and helps to increase revenue for manufacturer by reducing un-necessary costs.