* During the period from 1984 to 1986, Merloni undertook a number of initiatives to improve efficiency in inventory control and logistics.
* One such initiative was the transit point experiment where in the Milano region, regional distribution centre was eliminated in favor of transit points which held zero inventory.
In February 2005, Merloni Elettrodomestici was renamed Indesit Company, Indesit being the best known of the Group’s brands outside Italy.
The Company was also operating under its “historic” brand, Ariston, and the regional brands Hotpoint, Scholtes and Stinol.
In cross-docking, goods are received on one dock and are immediately shipped through another, without the need for storage.
To carefully assess the benefits and disadvantages of this proposal, a number of critical factors must be addressed: Inventory: As describe above, the current inventory levels held at the regional offices already reflect a 75% reduction in comparison to historical figures.Showed first 250 characters That is, it does not minimize any of the constraints that determine inventory levels such as reducing production set up times or production lot sizes.Therefore, the current requirements of inventory would not be affected.Infrastructure: Transit point concept would reduce operational costs and regional warehouse by eliminating the need for inventory storage, reduction in space, labor usage and utility, but more importantly it would still need to maintain the facilities for docking the trucks and temporary storage if the truck is unavailable for delivery immediately...Case Analysis On Merloni Elettrodomestici Spa Economics Essay Merloni Elettrodomestici Sp A is an Italian company based in Fabriano and is one of Europe’s biggest makers of home appliances.The Organization Merloni Elettrodomestici Sp A (Merloni), is a major Italian manufacturer of freestanding and built-in appliances.Merloni’s distribution network consists of five manufacturing plants, a centralized warehouse, and seventeen regional warehouses.During the perio from 1984 to 1986, Merloni undertook a number of initiatives to improve efficiency in inventory control and logistics.One such initiative was the transit point experiment where in the Milano region, regional distribution centre was eliminated in favour of tranit points which Quantitative Analysis: Now we shall look at a quantitative analysis of cost incurred by the company before and after using Transit Point methodology.* If the weather is bad near the central warehouse but good in other areas where there is demand, then it can lead to delays.Moreover with the help of quantitative analysis described above, it is not advisable to extend this Transit Point methodology to all the warehouse locations.