Student no : 43713009 EDA 201W Ass no : 2 719493 Question 1 1.1 Conflict→ The practice of recognizing and dealing with disputes in a rational‚ balanced and effective way. Conflict is an expressed struggle between at least two interdependent parties who perceive incompatible goals‚ scare resources‚ and interference from others in achieving their goals.” 1.2 Decision- making → Is the choice of the most suitable way of solving a problem or handling a situation . 1.3 Communication→ Is a means by
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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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What historical factors affect Ford’s ability to move to a built to order (BTO) model? Few of the historical factors affecting Ford’s ability to move to BTO are as follows: 1. Large number of suppliers: The fundamental issue for Ford is the management and control of their large database of their business partners‚ particularly suppliers and sub-suppliers. Unlike Dell‚ which has only about 50 suppliers‚ Ford has several thousand suppliers and operates in a more complex network of business
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Stat170 Introductory Statistics Unit Guide Semester 2‚ 2013 Table of Contents General Information .......................................................................................................... 3 1. Statement of Purpose .............................................................................................................. 3 2. Administrative Details.....................................................
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Barilla SpA is suffering from a problem of their own making - their distribution system is overly complex. That complexity is causing them to be unable to respond to their widely varying customer demand. Their customers‚ distributors‚ are forced to hold high inventories while simultaneously enduring stockouts on average of 7%‚ all because Barilla can’t rationalize their own processes to handle variability in demand. Barilla’s manufacturing process is long and inflexible. Given the high variability
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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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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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volatility is Barilla’s trade promotion strategy‚ which includes price‚ transportation‚ and volume discounts. Barilla would divide the year into 10 to 12 canvass periods to where certain promotional items would be sold at a discount. Barilla would also pay for the transportation costs to its distributors and would offer incentives for distributors to order in full truck-load quantities. Since Barilla did not have any minimum or maximum order quantities in place for its distributors‚ this made it much more
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Barilla SpA (A) Case Study: Just-in-Time for Delays The Barilla SpA (Society of Stockholders) was established in 1875. Barilla is considered the largest pasta producer in the world. The company was successful through the years but debt would overwhelm the company and require it to be sold in 1971; however‚ in eight short years the company would be sold back. Giorgio Maggiali‚ the director of logistics‚ struggled to make a change that he considered would take the company to the next level. The Just-in-time-distribution
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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 method of distribution‚ which is causing excess inventory and stockouts. By nature‚ their pasta products experience waves of high and low demand. Seasonal and promotional fluctuation was making it hard for Barilla to correctly forecast
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