Homework 2 Barilla Case Reading 1.Is there any evidence that Barilla faces the bullwhip effect? If so‚ what causes of the bullwhip effect are present? Yes‚ there are some evidences that Barilla is facing the bullwhip effect. The following causes are presented as below. 1) Demanding forecast. Since safety stock‚ as well as the base-stock level‚ strongly depends on these estimates‚ the user is forced to change order quantities‚ thus increasing variability. Lead-time. It is easy to see
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GOLD FLUCTUATION AND ITS IMPACT ON INDIAN ECONOMY INTRODUCTION History of gold International monetary system - gold or silver as a means of exchange. Gold is one of the most valuable economic indicators. Gold’s price elasticity is negative. Rising gold prices can change destiny of many unprofitable mines and turn them into a very successful business. Gold is a safe investment. Gold prices have been determined more by landed costs and by the rupee-dollar exchange rate. Factors affecting gold
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IJCSMS International Journal of Computer Science and Management Studies Vol. 13‚ Issue 06‚ August 2013 ISSN: 2231-5268 www.ijcsms.com Impact of Rupee- Dollar Fluctuations on Indian Economy: Challenges for Rbi & Indian Government Anshu Grewal MRIEM‚ Rohtak‚ Haryana (India) broken down and rupee ties to the pound sterling were disengaged. A float exchange regime was established by India. Effective rate of rupee was placed on a controlled‚ floating basis and linked to a “basket of currencies”
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ASSIGNMENT 2: BARILLA SPA INTRODUCTION Barilla SpA (Barilla)‚ is an Italian manufacturer that sells pasta to retailers largely through third-party distributors. Barilla has been experiencing widely fluctuating demand patterns from these distributors. Such unpredictable patterns are problematic because a specific sequence of pasta production is used that minimizes the incremental changes in kiln temperature in order to keep the changeover costs low and the product quality high. This process makes
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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 Sales personnel to
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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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Barilla SpA I think the main causes for large fluctuations in orders observed at the Pedrignano CDC are too frequent trade promotions‚ volume discounts‚ and distributors’ use of periodic review inventory systems. Collectively‚ Barilla experienced the bullwhip effect in its distribution network. With the use of trade promotions to push product into the grocery distribution network‚ Barilla distributors could buy as much product as desired to meet current and future needs. Without a ceiling in order
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Barilla Spa We need to regroup now and decide where to go with JITD. Is this type of program feasible in our environment? If so‚ what kind of customers should we target? And how do we convince them to sign up? Against Vitali’s proposal‚ “Just-in-Time Di stribution‚” met with significant resistance within Barilla. The sales and marketing organizations were particularly vocal in their opposition to the plan. A number of sales representatives felt that their responsibilities would be diminished if
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SUMMARY Barilla SpA‚ an Italian manufacturer and world’s largest pasta producer that sells to its retailers largely through third-party distributors‚ experienced widely fluctuating demand patterns from its distributors during the late 1980s and Barilla suffered increasing operational inefficiencies and cost penalties. Brando Vitali‚ Barilla’s ex-Director of Logistics‚ proposed a Just-In-Time Distribution (JITD) system to counter this demand variation. This system required the distributors to share
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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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