Merloni Elettrodomestici Spa: the Transit Point Experiment Introduction Merloni Elettrodomestici Is an Italian Manufacturer of Domestic Appliances. It Has 4 Plants, a Centralized Warehouse and 17 Warehouses Across Italy.

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Merloni Elettrodomestici SpA: The transit Point Experiment

Introduction
Merloni Elettrodomestici is an Italian manufacturer of domestic appliances. It has 4 plants, a centralized warehouse and 17 warehouses across Italy. Merloni was the pioneer of the innovation of Supply Chain. The purpose of this case study analysis is to calculate the benefits and the influence of cross docking technique for Merloni Elettrodomestici Spa Company across its all regional warehouses. Before innovating the solution of inventory, Merloni had already put into effect the programs that had successfully shortened production-planning lead times and decreased inventory levels. To further reduce inventory and enhance production efficiency, management was evaluating a proposal to replace regional warehouses with "transit-points". At these transit points, products arriving on trailers from the central warehouse and plants would then be transferred directly to smaller local delivery trucks. The primary issue being assessed was the viability of the transit point solution and its effectiveness in improving efficiency and reducing costs.
Question 1: Compare 2 scenarios and calculate the costs 1. Current flows:

Plants + Inventory
Central Warehouse
(Inventory)
RegionalWarehouses
(Inventories)
CLIENTS

In this situation, there are three levels of inventory: in Plants, in the Central Warehouse, and in Regional Warehouses.
The most of the inventory is localised in the Central Warehouse (44 253 units 56%), followed by Plant’s inventories (21 050 units 26%), and the rest of the inventory is in shared between the regional Warehouses (14 330 units 18%). * Company focused on decentralized operations and dedicated one single plant for one product. Company’s response for demand fluctuation could be good. All the operations and the risks are in control. * Every plant has its…...

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