Merloni Elettrodomestici SpA: The Transit Point Experiment

Case Study: Merloni Elettrodomestici SpA: The Transit Point try The Organization Merloni Elettrodomestici SpA (Merloni), is a major Italian producer of freestanding and built-in appliances. Merlonis dissemination network consists of five manufacturing plants, a centralize warehouse, and seventeen regional warehouses. During the past few years, Merloni has utilize programs that have success copiousy trim back payoff-planning lead measures and decreased inventory levels. In particular, with the serve up of a centralized inventory planning system and slaying of an A-B-C inventory classification program, they were able to reduce inventory levels at the regional offices by 75%. The fruition planning time horizon was rock-bottom from four months to three while the need lead-time to firm orders was cut down from two months to one. In line with a current revolve of efforts to further reduce inventory and enhance production efficiency, solicitude is evaluating a proposal to replace regional warehouses with fare-points. At these transit points, products arriving on trailers from the central warehouse and plants would then be transferred at a time to smaller local delivery trucks. The primary exhaust existence tasked then is the viability of the transit point solution and its lastingness in improving efficiency and reducing costs. The secondary cut is the supply of an exhibition center in the Milano area without earthshaking risks to product delivery.

Analysis The proposal being evaluated utilizes the concept of cross- sorreling and is synonymous with JIT in manufacturing . In cross- bobfloating, goods are received! on one dock and are immediately shipped through another, without the need for storage. To carefully rate the benefits and disadvantages of this proposal, a number of critical factors must be stave to: Inventory: As describe above, the current inventory levels held at the regional offices already reflect a 75% lessening in comparison to historical figures. This level of inventory is open found on customer demands and... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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