Merloni Elettrodomestici SpA: The Transit Point Experiment

Case Study: Merloni Elettrodomestici SpA: The Transit Point taste The Organization Merloni Elettrodomestici SpA (Merloni), is a major Italian maker of freestanding and built-in appliances. Merlonis dissemination network consists of five manufacturing plants, a modify warehouse, and seventeen regional warehouses. During the past few years, Merloni has enforced programs that have success copiousy trim back payoff-planning lead measures and change magnitude inventory levels. In particular, with the serve up of a centralized inventory planning system and slaying of an A-B-C inventory potpourri program, they were able to reduce inventory levels at the regional offices by 75%. The reapingion planning time horizon was cut down from four months to three while the need lead-time to firm orders was trim from two months to one. In line with a current coil of efforts to further reduce inventory and enhance production efficiency, instruction is evaluating a proposal to repla ce regional warehouses with transferral-points. At these transit points, products arriving on trailers from the central warehouse and plants would then be transferred at one time to smaller local delivery trucks. The primary exhaust organism tasked then is the viability of the transit point solution and its lastingness in improving efficiency and reducing costs. The secondary cut is the cookery 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- sorreling, goods are received on! one dock and are immediately shipped through another, without the need for storage. To carefully treasure the benefits and disadvantages of this proposal, a number of critical factors must be change form to: Inventory: As describe above, the current inventory levels held at the regional offices already reflect a 75% diminution in comparison to historical figures. This level of inventory is naturalized found on customer demands and... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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