Merloni

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INTRODUCTION
The purpose of this case study analysis is to evaluate 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 and installed built-in kitchen and bath furniture. d) Merloni Progetti (industrial projects): This unit licensed Merloni technology and oversaw the construction of plants to produce products locally in other countries. Besides above four plants Merloni had a centralized warehouse and seventeen warehouses across…...

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