Merloni Elettrodomestici SpA: The Transit Point Experiment

Case Study: Merloni Elettrodomestici SpA: The Transit Point investigate 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 alter warehouse, and seventeen regional warehouses. During the past few years, Merloni has implement programs that have success copiousy trim back payoff-planning lead measures and diminish inventory levels. In particular, with the serve up of a centralized inventory planning system and slaying of an A-B-C inventory miscellanea program, they were able to reduce inventory levels at the regional offices by 75%. The increaseion planning time horizon was trim 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 wrap of efforts to further reduce inventory and enhance production efficiency, trouble is evaluating a proposal to replace r egional warehouses with pass over-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 world tasked then is the viability of the transit point solution and its lastingness in improving efficiency and reducing costs. The secondary cut is the preparedness 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- shillinging, goods are received on on! e dock and are immediately shipped through another, without the need for storage. To carefully respect the benefits and disadvantages of this proposal, a number of critical factors must be fold 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 accomplished found on customer demands and... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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