dealers (franchisees) to buy gas from distributors. Dealers must buy gas from the central oil company. Dealers often complain that this is unfair. The practice has been the subject of antitrust lawsuits. Oil company executives argue that this policy is important because it limits free-riding on the part of the distributors. Explain the executives’ arguments in more detail. The Oil Company executives argue that allowing dealers to buy gas from distributors would be likely to cause supply disruptions
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and in its distributors’ distribution centers represent increasing financial burdens on both Barilla and its distribution partners. The tight heat and humidity specifications in the pasta dry process makes it difficult for Barilla to quickly respond to the huge fluctuation and uncertainty of demand form distributors. As a result‚ Barilla’s customer order fill rate is suffering and so does its manufacturing and distribution operation cost. Despite the excess stocks held in the distributors’ warehouses
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1. Describe Barilla’s manufacturing and distribution operations. Barilla’s has 25 manufacturing plants located all throughout Italy where each plant has a dedicated product that they manufacture ranging from pasta‚ flour mills‚ fresh bread and specialty products such as croissants and Christmas cakes. Raw materials‚ in the manufacturing process‚ were transformed to packaged pasta on fully-automated 120 meter long production lines. Each plant specialized in manufacturing a type of pasta with the
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distributed directly from CDCs to small independent shops and the t inventory level within these small shops was 2 weeks. * Supermarket chains and Independent supermarkets: 70% of Barilla’s products were distributed through a large distributor “GD” and Organized distributor “DO”. Both GD and DO purchase products from CDCs and hold a 2 weeks of dry products in inventory. During the late 1980s‚ Barilla suffered bullwhip effect due to demand fluctuations and inaccurate demand forecast‚ which caused inefficiencies
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inadequate customer service. The distributors are lying to customers to inflate sales. The distributors are not rendering adequate customer service all of which whether direct or indirect is associated poorly in the customer’s reflection and association with Handy Andy’s product (the trash compactors) b. Why is this not a customer service problem? It is not a customer service problem because this is service associated with the distributors. The distributors are not in house. They are not part
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time because of the bullwhip effect. - Reduces overall operational efficiency. - Reduces the overall profitability due to reduction in efficiency. - Reduces the utilization of central distribution center. - The distributor must build excess capacity to hold goods bought on any type of promotion‚ including quantity discounts‚ truckload discounts and canvass period discounts. Causes of Demand fluctuation are: - Transportation discounts - Volume
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suppliers and distributors‚ and analyze the consequences of all recommendations by identifying who can be affected and how. Discuss the current supply chain system at DIMCO. Durham International Manufacturing Company (DIMCO)‚ CEO Lucille Jenkins is looking to integrating the company external processes. The company currently has a traditional or basic supply chain structure which consists of three components; the company’s internal functions‚ external suppliers‚ and external distributors. The internal
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extremely high holding costs‚ it is simply not economically viable for Barilla to maintain substantial finished goods inventories to guarantee fulfilling distributors’ fluctuating order quantities. Demand fluctuations are also causing tension and disagreements among Barilla’s manufacturing and logistics personnel. Some believe that distributors and retailers should shoulder the burden of carrying additional inventory‚ while others believe these points on the supply chain are already holding too
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bundle the phones with data services. As Indian telecom companies don’t subsidize the cost of iPhones‚ as in the U.S.‚ these sales have been limited. Recently tied up the local operations of Ingram Micro Inc and Redington (India) Ltd.‚ a local distributor with 12‚000 smaller partners across the country Samsung The Distribution of Samsung mobile phones is divided by zones primarily. The northern region‚ comprising Jammu and Kashmir‚ Punjab‚ Haryana‚ Himachal Pradesh‚ Uttar Pradesh‚ Delhi‚ Uttarakhand
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