Merloni Elettrodomestici SpA: The Transit Point Experiment

Case Study: Merloni Elettrodomestici SpA: The Transit Point experiment 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 change 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 change magnitude inventory levels. In particular, with the serve up of a centralized inventory planning system and slaying of an A-B-C inventory mixture program, they were able to reduce inventory levels at the regional offices by 75%. The production planning time horizon was minify from four months to three while the need lead-time to firm orders was decrease from two months to one. In line with a current vagabond of efforts to further reduce inventory and enhance production efficiency, instruction is evaluating a propo sal to replace regional warehouses with pass through-points. At these transit points, products arriving on trailers from the central warehouse and plants would then be transferred instantly to smaller local delivery trucks. The primary exhaust macrocosm tasked then is the viability of the transit point solution and its lastingness in improving efficiency and reducing costs. The secondary cut is the furnish 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- bobsleding, goods are received on one dock and are immediately shipped through another, withou! t the need for storage. To carefully measure out the benefits and disadvantages of this proposal, a number of critical factors must be mould to: Inventory: As describe above, the current inventory levels held at the regional offices already reflect a 75% decrease in comparison to historical figures. This level of inventory is open up found on customer demands and... If you want to get a full essay, order it on our website: OrderEssay.net

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