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Merlon

In: Social Issues

Submitted By kunalku
Words 1313
Pages 6
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 per piece per order cycle Transit Point Experiment Scenario 1 (2 small trucks daily) Operating cost per cycle Inventory cost Transportation cost ( 2 small truck daily partially loaded) 58.68 780 13.29243354 (780/58.68) 1551.2 (3324*(14/30) 803.1333333 (1721*(14/30)) 8333.333333 ((5*0.9m+4*0.5m)/780) 10687.66667

14 days

310.24 0 17948.71795

18258.95795 Scenario 2 (1 Big truck daily)

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