...9-690-003 REV: AUGUST 7, 2001 JANICE H. HAMMOND Merloni Elettrodomestici SpA: The Transit Point Experiment Dr. Vittorio Merloni was president of Merloni Elettrodomestici, a major Italian manufacturer of domestic appliances. On the evening of February 23, 1986, he stood in the doorway of his Milano warehouse and surveyed the scene before him. In front of him stretched a sea of people dressed in evening attire—over 1,000 in all, not including the catering staff and the comedians, dancers, and musicians who had been hired to entertain. Dr. Merloni’s guests were busy chatting, eyeing hors d’oeuvres, juggling drinks, sidling up to the sumptuous buffet table; few would have guessed that at that moment they were socializing in the warehouse that normally served one of the company’s highest demand regions. The warehouse had been artfully transformed by Marcello Grigorov—architect and set designer for the “Piccolo Teatro di Milano”—into a dinner theater and showroom for Merloni’s built-in appliance products. In keeping with the company’s advertising theme—emphasizing the built-in products’ beauty, durability, and adaptability to any setting—the walls of the exposition area were covered with posters depicting the appliances set in panoramic natural landscapes (see Exhibit 1), product displays were built into simulated-marble walls and counter tops, and the building was adorned with faux-marble columns and arches. Guests were greeted by Merloni billboards along the major routes leading to...
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...Merloni Elettrodomestici SpA – Transit Point Experiment Case Study Introduction |Merloni Elettrodomestici SPA (Merloni) is a major Italian manufacturer of high quality domestic appliances –of the | |‘free-standing’ and ‘built-in’ varieties, both in Italy and throughout Europe. Founded in the year 1975 as Merloni | |Elettrodomestici SpA by Vittorio Merloni, as a spin-off from Industrie Merloni. It was renamed Indesit Company S.p.A in | |2005 after a company it acquired in 1987. Merloni distribution system consisted of a three tier distribution system based | |upon the following network | |1 Central warehouse (near Fabrion in Central Italy | |17 warehouses warehouse | |5 plant warehouses (one based at each manufacturing plant) – used to store raw materials and WIP in addition to the | |finished goods corresponding to the one product line which the associated plant manufactures. | |With the given system of network model of warehouses, finished goods were moved from plant warehouses to the central | |warehouse. From the central warehouse, products were sent to customers through two channels. The first channel involved the| |customers ordering...
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...the benefits or repercussion of cross docking technique for Merloni Elettrodomestici Spa Company across its all regional warehouses. Merloni had already implemented 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 "transitpoints". 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 then was the viability of the transit point solution and its effectiveness in improving efficiency and reducing costs. The secondary issue was the provision of an exhibition center in the Milano area without significant risks to product delivery. Brief Information on Merloni : Merloni Elettrodomestici SpA is a major Italian manufacturer of domestic appliances. The company has four manufacturing subsidiaries as a) Merloni Elettrodomestici (domestic appliances): It manufactured both freestanding and build-in appliances like washing machine etc. It had five plants in Italy. This unit had highest (75%) sales revenue share in 1984. b) Merloni Igienico Sanitari (Bath and heating products): It manufactured water heaters, bath tubs etc. This unit had 20% revenue share in 1984 for overall group. c) Merloni Casa (Build-in kitchen and furniture): It designed, manufactured...
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...Case Analysis: Merloni Elettrodomestici Spa By Sharath Chandra Rao Silvery PGP12094 Kumar Saurabh PGP12022 Vigneshwar PGP12104 Tejit Mithal PGP12046 A very brief insight into the Company: * Merloni Elettrodomestici SpA is an Italian company based in Fabriano and is one of Europe’s biggest makers of domestic appliances. * 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. Question 1: What are the costs and benefits of Merloni's current distribution system and of a transit-point-based distribution system? Answer 1: Following are the calculations for both the regional warehouses Roma and Catanzaro. Assumptions made for the calculations: 1. 20 working days in a month. 2. 218 Km, 797 Km – distance between Fabriano and Roma; Fabriano and Catanzaro. 3. 0.425 million & 0.25 million – each tractor truck cost trailer & small from Fabriano to Roma. 4. 1 million & 0.55 million – each tractor truck cost trailer & small from Fabriano to Catanzaro. The cost reduction for Roma Warehouse is 11.874%. Here in Catanzaro regional warehouse, the cost actually increased. This cost can be clearly attributed to a large increase in Total Long Haul Transportation Cost from...
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...Problem/Situation Merloni Elettrodomestici SpA (Merloni) is a major Italian manufacturer of builtin and freestanding Home appliances. Merloni's distribution network consists of five manufacturing plants, a centralized warehouse, and seventeen regional warehouses. During the past few years, Merloni has been successful in implementing programs that have significantly reduced productionplanning lead times and decreased inventory levels. Particularly, with the implementation of an ABC inventory classification program and institution of a centralized inventory planning system (Refer to Figure 1 Appendix 1), they were able to reduce inventory levels and shorten production planning cycles at the regional offices by 75%. Merloni was able to achieve a reduction from four to three months in the production planning time horizon while the required leadtime to firm orders was reduced from two months to one. In their efforts to further reduce inventory and enhance production efficiency, management is evaluating a proposal to replace regional warehouses with "transitpoints" (Refer to Figure 2 Appendix 1). 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 that is being assessed is the feasibility of the transit point solution and its effectiveness in improving efficiency, reducing operating and transport costs, reducing inventory requirement and improving customer service...
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...Assignment Supply Chain Management Merloni Elettrodomestici SpA : The Transit Point Experiment Submitted By : Satish Kumar P Ramkumar Sameer Sarkate Manish Maurya Y9125037 Y9125026 Y9125036 Y9125021 Based on the data provided for Roma and Cantazaro, following is the numerical analysis of regional warehousing model and transit point experiment model. Short haul transportation cost will remain unchanged as the trucks will still be delivering to retailers. Case 1: Roma Average Inventory Demand filled by regional warehouse Order cycle Current Model (values in Lire on per piece basis) Operating cost per order cycle Inventory cost per order cycle Transportation cost (10 trucks in 8 days delivering 1200 items) Total cost per piece per order cycle 1200 154.8 7.751937984 (1200/154.8) 961.3333333 (3605*(8/30)) 276 (1035*(8/30) 3166.666667 (0.38m*10/1200) 4404 8 Days TPE Model (values in Lire on per piece basis) Operating cost (8days) Inventory cost Transportation cost (1 small and one big truck daily for 8days) 192.2666667 (20% of 3605)*(8/30) 0 No inventory 3866.666667 (8*(0.38+0.2)m/1200 4058.933333 345.0666667 Saving (Lire per piece per 8 days) Case 2: Catanzaro Average daily demand filled by regional warehouse Demand filled by regional warehouse Order cycle Current Model (values in Lire on per piece basis) Operating cost per order cycle Inventory cost per order cycle Transportation cost (5 large and 4 small trucks in 8 days delivering 1200 items) Total cost...
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...iAssignment Supply Chain Management Merloni Elettrodomestici SpA : The Transit Point Experiment Submitted By : Satish Kumar P Ramkumar Sameer Sarkate Manish Maurya Y9125037 Y9125026 Y9125036 Y9125021 Based on the data provided for Roma and Cantazaro, following is the numerical analysis of regional warehousing model and transit point experiment model. Short haul transportation cost will remain unchanged as the trucks will still be delivering to retailers. Case 1: Roma Average Inventory Demand filled by regional warehouse Order cycle Current Model (values in Lire on per piece basis) Operating cost per order cycle Inventory cost per order cycle Transportation cost (10 trucks in 8 days delivering 1200 items) Total cost per piece per order cycle 1200 154.8 7.751937984 (1200/154.8) 961.3333333 (3605*(8/30)) 276 (1035*(8/30) 3166.666667 (0.38m*10/1200) 4404 8 Days TPE Model (values in Lire on per piece basis) Operating cost (8days) Inventory cost Transportation cost (1 small and one big truck daily for 8days) 192.2666667 (20% of 3605)*(8/30) 0 No inventory 3866.666667 (8*(0.38+0.2)m/1200 4058.933333 345.0666667 Saving (Lire per piece per 8 days) Case 2: Catanzaro Average daily demand filled by regional warehouse Demand filled by regional warehouse Order cycle Current Model (values in Lire on per piece basis) Operating cost per order cycle Inventory cost per order cycle Transportation cost (5 large and 4 small trucks in 8 days delivering 1200 items) Total cost...
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...ДЕМО-ВЕРСИЯ российский рыноК бытовой холодильной техники МАРКЕТИНГОВОЕ ИССЛЕДОВАНИЕ И АНАЛИЗ рынка Москва, декабрь 2009 СОДЕРЖАНИЕ СОДЕРЖАНИЕ I. ВВЕДЕНИЕ II. ХАРАКТЕРИСТИКА ИССЛЕДОВАНИЯ III. АНАЛИЗ РОССИЙСКОГО РЫНКА БЫТОВОЙ ХОЛОДИЛЬНОЙ ТЕХНИКИ 1. Общая характеристика Рынка 1.1. Описание предмета исследования 1.2. Показатели социально-экономического развития 1.3. Описание отрасли. Российский рынок бытовой техники и электроники 1.4. Описание влияющих рынков Рынок жилой недвижимости Рынок торговой недвижимости 1.5. Резюме по разделу 2. Сегментация и структура Рынка 2.1. Сегментация Рынка по основным видам продукции 2.2. Сезонность на Рынке 2.3. Резюме по разделу 3. Основные количественные характеристики Рынка 3.1. Объём Рынка 3.2. Темпы роста Рынка 3.3. Резюме по разделу 4. Конкурентный анализ Рынка 4.1. Конкуренция на Рынке 4.2. Описание профилей крупнейших игроков Рынка Indesit Company ЗАО «Атлант» Samsung Electronics ОАО «КЗХ «Бирюса» Группа «Норд» ФГУП «ПО «Завод им. Серго» (POZIS) LG Electronics Inc. Компания Vestel Bosch und Siemens Hausgeraete GmbH Завод «Океан» (Группа «В-Лазер) 4.3. Резюме по разделу 5. Сегмент розничной торговли на Рынке 5.1. Описание розничного сегмента 5.2. Описание профилей крупнейших сетевых розничных точек по продаже бытовой техники Российские торговые компании «Эльдорадо» «М.Видео» «Техносила» «Мир» Сеть магазинов «Линия тока» «Эксперт» «DOMO» «Технопарк» (Электрофлот) ...
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