Stat170 Introductory Statistics Unit Guide Semester 2‚ 2013 Table of Contents General Information .......................................................................................................... 3 1. Statement of Purpose .............................................................................................................. 3 2. Administrative Details.....................................................
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ASSIGNMENT 2: BARILLA SPA INTRODUCTION Barilla SpA (Barilla)‚ is an Italian manufacturer that sells pasta to retailers largely through third-party distributors. Barilla has been experiencing widely fluctuating demand patterns from these distributors. Such unpredictable patterns are problematic because a specific sequence of pasta production is used that minimizes the incremental changes in kiln temperature in order to keep the changeover costs low and the product quality high. This process makes
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SUMMARY Barilla SpA‚ an Italian manufacturer and world’s largest pasta producer that sells to its retailers largely through third-party distributors‚ experienced widely fluctuating demand patterns from its distributors during the late 1980s and Barilla suffered increasing operational inefficiencies and cost penalties. Brando Vitali‚ Barilla’s ex-Director of Logistics‚ proposed a Just-In-Time Distribution (JITD) system to counter this demand variation. This system required the distributors to share
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Student no : 43713009 EDA 201W Ass no : 2 719493 Question 1 1.1 Conflict→ The practice of recognizing and dealing with disputes in a rational‚ balanced and effective way. Conflict is an expressed struggle between at least two interdependent parties who perceive incompatible goals‚ scare resources‚ and interference from others in achieving their goals.” 1.2 Decision- making → Is the choice of the most suitable way of solving a problem or handling a situation . 1.3 Communication→ Is a means by
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BARILLA CASE STUDY Causes that led to the JITD idea: Fluctuating demands from the retailers and the burden it caused on the company’s manufacturing and distribution system. The problem with the fluctuating demand is during the period of high demand the manufacturer should have the capability to increase the supplies else the backlog will increase. On the other hand when the demand decreases it will be expensive to store the excess inventory. A problem at one point in the supply chain will be translated
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Barilla Case Study There are some issues currently faced by Barilla. One is that demand fluctuates extremely because distributors order weekly and it is hard to predict the demand on a weekly basis. Another is that there is a significant pressure to manufacture because lead-time and perishability of product vary so much. It’s very hard to speed up the process because each type of pasta requires specific heat and humidity level to dry them properly. In addition‚ Barilla has to make both dry
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patterns. In order to reduce the Bullwhip effect being experienced by Barilla‚ their supply chain would have to be Centralized. This solution allows Barilla to see end customer demand and eliminate costs involved with inventory‚ manufacturing‚ and transportation. JITD would allow Barilla to work directly with its distributors and create a flexible manufacturing process. By following the suggestions made in the plan of action‚ Barilla will succeed in influencing its distributors and Sales personnel to
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Barilla SpA is suffering from a problem of their own making - their distribution system is overly complex. That complexity is causing them to be unable to respond to their widely varying customer demand. Their customers‚ distributors‚ are forced to hold high inventories while simultaneously enduring stockouts on average of 7%‚ all because Barilla can’t rationalize their own processes to handle variability in demand. Barilla’s manufacturing process is long and inflexible. Given the high variability
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What historical factors affect Ford’s ability to move to a built to order (BTO) model? Few of the historical factors affecting Ford’s ability to move to BTO are as follows: 1. Large number of suppliers: The fundamental issue for Ford is the management and control of their large database of their business partners‚ particularly suppliers and sub-suppliers. Unlike Dell‚ which has only about 50 suppliers‚ Ford has several thousand suppliers and operates in a more complex network of business
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Upon analysis of Barilla’s proposed implementation of the Just-In-Time Distribution (JITD) model‚ it appears that the JITD proposal is attempting to minimize the bullwhip effect phenomenon on the pasta manufacturer’s supply chain. The bullwhip effect is seen as one moves upstream in the supply chain from the retailer to the distributor to Barilla’s central distribution centers (CDC) to Barilla’s plants – the farther one moves upstream‚ the greater the volatility in demand. This demand fluctuation
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