Merloni Elettrodomestici is a leading Italian manufacturer of household appliances. In 1986, an exhibition for Merloni customers on its regional warehouse Milano is planned. During the two months before the event, when the bearings must be free of inventory, the company conducts a “hub” experiment. Every day will be sent a truckload of products of the company to Milan central warehouse, where it is immediately transferred to small truck for delivery. At the end … Read more »

Merloni Elettrodomestici is a leading Italian manufacturer of household appliances. In 1986, an exhibition for Merloni customers on its regional warehouse Milano is planned. During the two months before the event, when the bearings must be free of inventory, the company conducts a “hub” experiment. Every day will be sent a truckload of products of the company to Milan central warehouse, where it is immediately transferred to small truck for delivery. At the end of the experiment, the company is considering the replacement of its 17 regional warehouses with transit countries. Students are asked to evaluate this proposal and recommend a configuration for Merloni distribution network. Problems in the analysis of the case should be taken into account, the impact of different network configurations on customer service and inventory, labor, operating and transportation costs.
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from
Janice H. Hammond,
Maura Kelly
Source: Harvard Business School
19 pages.
Publication Date: Feb 22, 1990. Prod #: 690003-PDF-ENG
Merloni Elettrodomestici SpA: The Transit Point Experiment HBR case solution