too much inventory. Most important‚ as end-consumer demand fluctuates – even slightly – the perceived variation in demand increases significantly moving down the supply chain toward Barilla’s manufacturing facilities. This phenomenon‚ called the bullwhip effect‚ leads manufacturing personnel to make demand forecasts that do not accurately reflect real demand levels. This is the primary issue facing Barilla’s operations process. Specifically‚ management must understand that forecasting demand levels
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Furthermore‚ with the current lack of synchronization between the different HP departments‚ as this demand reaches upstream the supply chain‚ to the DCs and then to the Manufacturers‚ this uncertainty in demand further increases- a phenomenon called the Bullwhip effect. However‚ fluctuating demand is beyond the control of the company; hence‚ HP must use an effective demand forecasting system to mitigate the problem‚ which is currently missing. Demand forecasting will only be relevant if it is correctly
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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 in efficiency. - Reduces the utilization
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1. Flow of products and information within Tehindo’s supply chain Distribution Facilities There are three key players in Tehindo’s supply chain: the tea leaves suppliers‚ ten factories across Indonesia and the distributions facilities‚ which includes sales center‚ distributors‚ wholesalers‚ retailers. - Tehindo corporate organization owns a total of over 1500 hectares of tea plantations in West Java. - Ten manufacturing plants are spread across three island in Indonesia: Sumatera‚ Java and
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The University of New South Wales School of Information Systems‚ Technology and Management INFS5978 Accounting Information Systems (AIS) Final Examination‚ Session 1‚ 2010 1. Time allowed: 2 hours 2. Total number of questions: 5 3. Answer all FIVE questions. 4. Answer questions in the examination booklet provided 5. Marks for Questions are as displayed. 6. Total marks: 45 7. There are 5 pages in this paper‚ including this page. 8. The candidate may retain this paper. 9. All answers must be written
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The shampoo and lipstick aisles at target and wal-mart hardly seem like battlegrounds‚ but they are actually sites for an unending struggle among consumer products companies for retail shelf space No company knows this better than Procter&Gamble‚ one of the world’s largest consumer goods companies‚ with annual revenue surpassing 76 dollar billion and 138‚000 employees in 80 countries. The company sells more than 300 brands worldwide‚ including Cover Girl cosmetics‚ Olay skin care‚ Crest‚ Charmin
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Ntelianidou Linta PART A Analyze Soundbuzz and its business strategy using the competitive forces models. What strategies did it develop for dealing with competitive forces? According to Porter’s Five Forces Model of Competition the nature of competition in any industry is personified in the following five forces: Threat of new potential entrants Threat of substitute product/services Bargaining power of suppliers Bargaining power of buyers Rivalry among current competitors These five
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great wardrobe choices for an archaeologist. They protect you from the sun‚ as well as accidentally cutting yourself on sherds while excavating. One part of his appearance that does not fit the archeologist stereotype is his bullwhip. We have never discussed needing a bullwhip in class‚ so it is probably fitting a specific need: to create action. The Indiana Jones franchise is considered an action film series‚ so while he has a really cool day job‚ he needs something to make him the hero of the story
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Barilla SpA Case Study Define the Problem: Describe the type of case and what problem(s) or issue(s) should be the focus for your analysis. Type: Supply Chain Problems/Issues: - Extreme demand fluctuations – week-to-week variation in distributors order pattern‚ strained Barilla’s manufacturing and logistics operations: high inventory‚ stock out‚ low fill rate to customers. - Pressures to manufacturing in terms of production lead-time and availability of the product - High inventory cost
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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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