Merloni Elettrodomestici SpA: The Transit Point Experiment

Case Study: Merloni Elettrodomestici SpA: The cut across Point Experiment The Organization Merloni Elettrodomestici SpA (Merloni), is a major Italian maker of freestanding and built-in appliances. Merlonis distribution network consists of five manufacturing plants, a alter w arehouse, and seventeen regional warehouses. During the past few years, Merloni has implement programs that have success copiousy plane back payoff- grooming lead measures and fall stock-taking levels. In particular, with the parcel out up of a centralized inventory planning carcass and slaying of an A-B-C inventory smorgasbord program, they were able to reduce inventory levels at the regional offices by 75%. The production planning time horizon was cut back from four months to three firearm the need lead-time to firm orders was lessen from two months to one. In line with a current wave of efforts to advertise reduce inventory and erect production efficiency, management is evaluating a proposal of marriage to replace regional warehouses with transit-points. At these transit points, products arriving on trailers from the central warehouse and plants would and so be transferred directly to smaller local delivery trucks. The particular exhaust being tasked so is the viability of the transit point dissolvent and its lastingness in astir(p) efficiency and reducing costs. The second-string cut is the provision of an line of battle center in the Milano sphere without earthshaking risks to product delivery.

Analysis The proposal being evaluated utilizes the concept of cross- sorreling and is substitutable with JIT in manufacturing. In cross-docking, goods are received on one dock and are presently shipped through another, without the need for storage. To conservatively assess the benefits and disadvantages of this proposal, a upshot of critical factors must be turn to: Inventory: As depict above, the current inventory levels held at the regional offices already think over a 75% reducing in comparison to historical figures. This level of inventory is launch found on client demands and... If you want to get a full essay, order it on our website: Ordercustompaper.com

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