Session19handout - SupplyChainModeling...

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Click to edit Master subtitle style Supply Chain Modeling Session 19: Merloni-TransitPoints… Atalay Atasu
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Objective of Today’s Class § Merloni-Transit Point Experiment § Understand current distribution network § Impact of transit point proposal on stakeholders § Quantify the benefits of transit point § Should Merloni extend the scope? § Rules of thumb for distribution network  design § Supply chain distribution structures 
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Merloni: Opening Questions … § What is the transit point proposal? § Who are the stakeholders? § What are the costs and benefits of the  transit point approach? § What do you think Merloni should do  about the transit point experiment?
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Merloni’s Distribution Network Central  Distribution  Center Plants CDC RDC Retailers Consumers
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What is the Transit Point Proposal?  
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Days of Inventory at Each Stage in the  Facility Number Inventory  range Average  inventory Plants 5 7-26 days 12.5 days CDC 1 12-45 days 26.2 days RDCs 17 5-45 days 12.1 days Retailers Many Varies unknown Consumer s Many 0-1 units What are the causes of having wide variation in inventory  levels among plants, among product categories in the  CDC, and among RDCs?
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Reasons for Differences in Inventory  Levels § At Plants § At CDC §   §   § At RDCs
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First Wave of Reengineering Efforts § ABC classification implemented § A: 2 weeks; B: 4 weeks; C: don’t hold inventory § What is the difference in inventory levels due to? § It is due to different safety stock requirements for 
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This note was uploaded on 01/25/2011 for the course MGT 4803 taught by Professor Staff during the Spring '08 term at Georgia Institute of Technology.

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Session19handout - SupplyChainModeling...

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