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? Just In Time Distribution is a unique idea that the logistics director wanted to implement at Barilla. It was in response to the significant fluctuations in sales demand that Barilla was experiencing from their distribution centers. Exhibit 12 in the case shows how volatile the ordering could be. It looks very unpredictable using their current
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Barilla Case 1a. Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits of this program? There is a large variability in demand. (GD’s and DO’s order once a week‚ in varying quantities‚ causing a bullwhip effect). This is strange‚ as the total market is relatively flat and nearly completely saturated. Because pasta is so common in Italy‚ people usually stick with their choice of brand‚ which is why demand should be stable for Barilla’s
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Executive Summary Barilla‚ the leading pasta manufacturer in Italy‚ faces increasing problems related to demand fluctuation. Their distributors also suffer from high inventory holding costs and low service levels on the other hand. This report explains‚ why the company and their distributors are troubled with this situation and how Barilla intends to solve it. The problem Barilla experiences is called the “Bullwhip Effect”‚ i.e. that demand variability increases when moving up the supply chain
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What is the JITD program? Evaluate it from the perspective of Barilla and an independent distributor. What kind of products might such a program is best suited for? The pasta supply chain suffered high inventory levels at each segment of the supply chain; stock-outs at the distributor’s level and the customer’s demand variability magnified the problem. Availability of demand information at store levels is hard to get. A JITD system utilizes a vendor-controlled inventory scheme to combat a distribution
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Ans3 JITD program created some conflicts both external (i.e. from the distributor perspective) and internal (i.e. from the sales perspective) which are explained below. JITD- Internal Conflicts JITD created some internal resistance within the organization. Sales and marketing department opposed the plan of JITD. They had many fears related to implementation of JITD. There concerns can be explained in the following ways. 1 Sales representative felt that their responsibilities would be reduced
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Giorgia Maggiali‚ head of materials management for Barilla‚ is developing and implementing the “Just-in-Time Distribution” program across the business. It is recommended Maggiali utilize sales reps to streamline and advocate for JITD at the store level. Work Directly with Internal and External Groups to Communicate Clear Vision In order to successfully implement a change in how business is conducted in any large institution‚ like the JITD system‚ it needs to overcome resistive forces from internal
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1. What are the causes of fluctuation? (20 points) Fluctuation of Raw Materials Pasta is produced with various types of raw material‚ including wheat and egg. If the supply of raw materials has high level of fluctuation‚ (which may be caused by weather condition or cost of raising chicken) then the production and supply of pasta will be influenced. Diverse Product Category Barilla’s products are divided into Fresh products and Dry products. The demand for these two distinct
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the reason of gallbladder‚ or cholelithiasis. There are many other cause of acute cholecystitis such as ischemia‚ allergic reactions infections with protozoa‚ and poisoning. When the gallbladder becomes distended‚ blood flow and lymphatic drainage are compromised in which it can lead to mucosal ischemia and necrosis. The mechanism as to how cholecystitis takes place is said to be uncertain‚ many theories exist. Injury may be the cause of retained concentrated bile which is a very unpleasant substance
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Barilla Spa (A) Case Questions 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? 2. What conflicts or barriers internal to Barilla doe the JITD program create? What causes these conflicts? As Giorgio Maggiali‚ how would you deal with these? 3. Why are Barilla’s customers so resistant to the JITD idea? How might Maggiali be more successful in persuading customer to at least try
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1. Causes for JITD implementation There were large fluctuations in the demand of pasta industry and distribution centres kept high inventory because of that reason (they were increasing inventory of items they already stocked and added items they currently did not carry). There was also a stockouts issue that strain Barillas’s manufacturing and logistics operations. The main reason for such fluctuations was the so-called bullwhip effect‚ which is an observed phenomenon in forecast-driven distribution
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