distributors order 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
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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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Management Barilla SpA‚ the multinational pasta maker‚ has a long-standing tradition – founded in 1877 by Pietro Barilla in Parma‚ Italy‚ it remains privately held by the fourth generation of Barilla family. The company’s portfolio includes Barilla‚ Mulino Bianco‚ Pavesi‚ Voiello‚ Alixir in Italy‚ as well as the Wasabröd (Sweden)‚ Misko (Greece)‚ Filiz (Turkey)‚ Yemina and Vesta (Mexico) trademarks abroad. The consolidated revenue of the Barilla Group – which includes Barilla and Lieken – increased
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Barilla SpA (A) Case Study: Just-in-Time for Delays The Barilla SpA (Society of Stockholders) was established in 1875. Barilla is considered the largest pasta producer in the world. The company was successful through the years but debt would overwhelm the company and require it to be sold in 1971; however‚ in eight short years the company would be sold back. Giorgio Maggiali‚ the director of logistics‚ struggled to make a change that he considered would take the company to the next level. The Just-in-time-distribution
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Barilla SpA Case Table of Contents Executive Summary 2 Issues Identification 3 Environmental and Root Cause Analysis 3 Alternatives or Options 4 Recommendation and Implementation 5 Monitor and Control 6 Conclusion 6 Executive Summary Barilla’s high stock out rates along with large average inventory numbers are the main reasons why Maggiali is looking to continue on with Vitali’s dream of implementing the Just In Time Distribution system. However‚ faced with great external resistance
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Barilla SPA Operations & supply chain management Case study 2012 1 Is there any evidence that Barilla faces the bullwhip effect? If so‚ what causes of the bullwhip effect are present? Barilla has two products lines‚ “dry products representing 75% of sales” and “fresh products representing 25% of sales”. Products are shipped from plants to one of the two central distribution centers (CDCs). Each CDC held about a month’s worth of dry product inventory. There are three types
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Barilla SpA (A) Christel Bou Farhat Notre Dame University 1- Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits and drawbacks of this program? In your answers‚ consider the Barilla and distributors points of view (400-500 words). * Barilla’s Supply Chain suffered from the bullwhip effect that was mostly caused by the demand fluctuations and damaging the company’s manufacturing and distribution system. This fluctuating
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Barilla was first founded in 1875 by Pietro Barilla in Parma‚ Italy. Pietro’s son led Barilla through momentous period of growth and in 1940s‚ he passed Barilla to his own sons namely Pietro and Gianni. As time passed by‚ Barilla evolved from its modest beginnings into a large‚ vertically integrated corporation with factories spread throughout Italy. The expansion of existing businesses both in Italy and other European countries as well as the acquisition of new and related businesses had enabled
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see in this exhibit? Your analysis should consider full range of implications to the entire channel‚ and not just Barilla. Per exhibit 12 the impact of order fluctuations are as follows: - Creates a bullwhip effect at Barilla. - Resource and material planning becomes cumbersome and inefficient. - Might increase the lead time because of the bullwhip effect. - Reduces overall operational efficiency. - Reduces the overall profitability due to reduction
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Barilla SpA is an Italian pasta manufacturer comprised of 7 divisions: 3 pasta‚ bakery‚ bread‚ catering‚ and international. By 1990‚ Barilla had become the largest pasta manufacturer in the world. The company ships its pasta to one of two central distribution centers (CDC) where it is bought by individual supermarket distributors called "grande distribuzione" (GD for larger supermarkets) and "distribuzione organizzata" (DO for smaller‚ independent supermarkets). During the late 1980s‚ the distributors
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