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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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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BARILLA CASE STUDY REPORT 1. Introduction Barilla was founded in 1875 in Parma‚ Italy by Pietro Barilla. It used to be a small store that sold pasta and bakery products. In the 1960s‚ it differentiates itself from competitors by producing high quality product with noticeable packaging and marketing campaign. In the 1970s‚ due to the big investment for pasta plant‚ Barilla was in huge debt and was sold to WR Grace (a multi national firm). Followed in 1979‚ the Barilla brother had enough money
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Executive Summary Barilla SpA is a world largest past manufacturer has experienced a phenomenal growth. The company had pasta share of 35% in Italy and 22% in Europe‚ plus 29% in Italian bakery product market(page 2 case) However‚ it began taken a tall on Barilla’s “manufacturing and distribution system” (page 1 Case). Without having proper data and control over the orders the company experienced wide fluctuations in demand. As a result Barilla experienced bullwhip effect where demand forecast
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Name: ABDELRAHIM Abdelrahim Barilla’s Key Success Factors Barilla was founded in 1870. Barilla sells Pasta‚ Sauce and biscuits all over the world Barilla started with a small bakery Barilla made pasta with eggs Retain good management: - Since Barilla was created it is governed by a family. - Barilla left the artisanal zone and entered the industrial domain in 1910. - In terms of quality‚ Barilla’s pasta is with eggs - The family leaves a marge of liberty for the managers but main
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Barilla SpA * The spaghetti incident - Maastricht University School of Business and Economics International Executive Master of Finance and Control 20 April 2012 Course – Logistics Prof. Dr. Allard van Riel Pauline Henselmans Jetse van de Kamp Ze Zhu Thiago Barros de Oliveira Rene Lorrier Contents 1. Reasons for the increase in variability in demand in Barilla’s supply chain 3 1.1 Distributed inventories‚ local optimization 3 1.2 Lack of inventory information and
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statement How best to manage Academia to fit into Barilla’s long-term strategy and need for growth. Situation analysis 3C Company Barilla Largest Italian food company in the world. Best-selling pasta brand in the United States Strongest brand name in Italy. Dry pasta and several bakery categories in Italy. While also pasta sauces for the U.S. market. Academia Barilla Feeling the limitation of growing the business with only pasta and sauce. Launched in 2004 to preserve‚ develop‚ and promote authentic
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for the Bullwhip Effect Giovanni Miragliotta In this article‚ Giovanni Miragliotta has two main purposes. The first one is to strengthen the knowledge on the dynamics of a supply chain via a deep review of the Bullwhip Effect. The second one is to build a new framework abled to classify the causes of the Bullwhip effect. Furthermore‚ this framework can distinguish layers and mechanisms that lead to Bullwhip Effect and so help managers to better understand the causes of this effect and to implement
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Supply Chain Management Assignment 3: Supply Chain Coordination Describe Barilla’s manufacturing and distribution operations. Manufacturing: Barilla has 25 plants‚ including large flour mills‚ pasta plants‚ and fresh bread‚ as well as plants producing specialty products. Raw materials‚ in the manufacturing process‚ were transformed to packaged pasta on fully-automated 120 meter long production lines. The plants were specialized by the type of pasta they would produce‚ with the primary distinction
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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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