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Therefore, the current requirements of inventory would not be affected.
Infrastructure: Transit point concept would reduce operational costs and regional warehouse by eliminating the need for inventory storage, reduction in space, labor usage and utility, but more importantly it would still need to maintain the facilities for docking the trucks and temporary storage if the truck is unavailable for delivery immediately...
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Therefore, Merloni will not be able to completely eliminate the cost of operating its regional warehouses. Also, the use of transit points alone will not reduce inventory level requirements; it simply pushes inventories to the central warehouse. This means that the central warehouse will need to expand in order to accommodate this excess inventory...
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General points of the essay
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Open Storage Means “goo Enough”?
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