Case Study: Merloni Elettrodomestici SpA: The Transit Point prove The Organization Merloni Elettrodomestici SpA (Merloni), is a major Italian manufacturer 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 salmagundi program, they were able to reduce inventory levels at the regional offices by 75%. The harvest-festivalion planning time horizon was lessen from four months to three while the need lead-time to firm orders was lessen from two months to one. In line with a current revolve of efforts to further reduce inventory and enhance production efficiency, instruction is evaluatin g a proposal to replace regional warehouses with transferral-points. At these transit points, products arriving on trailers from the central warehouse and plants would then be transferred straightway to smaller local delivery trucks. The primary exhaust universe tasked then is the viability of the transit point solution and its lastingness in improving efficiency and reducing costs. The secondary cut is the supplying 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 wi th JIT in manufacturing. In cross- entering! , goods are received on one dock and are immediately shipped through another, without the need for storage. To carefully tax the benefits and disadvantages of this proposal, a number of critical factors must be round of golf to: Inventory: As describe above, the current inventory levels held at the regional offices already reflect a 75% decrement in comparison to historical figures. This level of inventory is naturalised found on customer demands and... If you want to get a full essay, order it on our website:
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