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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1499 |
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On the other hand, comparing to the Transit Point, this system has lower transportation costs (Exhibit 6).
COSTS AND BENEFITS OF THE TRANSIT POINT SYSTEM
The transit point system came with the necessity of creating an alternative mean of serving the Milano customers, while the warehouse was occupied with the Built-in appliance exposition...
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This system was also an opportunity to check the feasibility of a system with no need of holding inventory.
The guide lines of this approach were very simple. It established that the regional warehouses should be eliminated in order to reduce inventory to zero. However, that place would be used like an “exchanged spotâ€, which means that the trucks were filled up in the central warehouse and unloaded to small local trucks that would deliver the products to clients...
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