Merloni

GENERAL OVERVIEW Merloni Company was created in 1930 by Aristide Merloni. After the entropy World War Merloni started to expand their range of products, and in the 60s and 70s Merloni was already the biggest producer of racy quality domestic appliances, operating in both, Italy and Europe. At some point in the 70s, the company became Merloni host formed by four subsidiaries. Merloni Progetti for industrial projects; Merloni Igienico Sanitari for bath and heat products; Merloni Casa for built-in kitchen and bath furniture; and Merloni Electtrodomestici for domestic appliances. The latter is the appurtenant with the biggest percentage of consolidated sales. COSTS AND BENEFITS OF MERLONIS CURRENT distribution SYSTEM When analysing the actual distribution model, we find out several(prenominal) faults. Firstly, the inventory management is much decentralized and there be few formal replenishment methods. The regional warehouses managers practiced narrow the stock goals and call central warehouse daily with a list of restocking needs. This lack of control can lead to an special of stock, creating a higher inventory cost, or to a occurrence of stock out. When the latter happens, regional warehouse manager mustiness order the required product from central warehouse and in order to compensate costumers he offers a discount of 4.

000lires per piece. We likewise realized that transportation costs are particularly high because every finished good, no matter where it came from, must be taken to the central warehouse and just afterwards it is move to a regional warehouse. However, in some cases the products are just travelling across Italy creating useless transportations costs. For example, a dishwasher produced in Bonferraro goes to the central warehouse, in Fabriano, and then comes back to Padova to be sold. to a lower place the current distribution system, the goods are only shipped when they have overflowing truck loads. This phenomenon is called batching orders and it is one of the causes of... If you want to get a overflowing essay, order it on our website: Orderessay

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