EXECUTIVE SUMMARY Barilla SpA‚ world’s largest manufacturer of pasta based in Italy is experiencing extreme demand variability resulting to operational inefficiency and increased cost. To combat the key issues stated my decision is to implement the Just In Time Distribution (JITD). This new system‚ contrary to current system Barilla has will eliminate Bullwhip effect and stock outs by having centralized information‚ there will be data transparency between Barilla and distributors. Distributors will
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Bullwhip Effect Causes and Impact. How Can Improved IT Support Reduce Bullwhip Effect Dnyanesh Sarang Table of Contents 1 Introduction 2 2 Supply Chain & Bullwhip Effect 2 3 Causes of Bullwhip effect 4 3.1 Demand Forecast Updating 4 3.2 Order Batching 5 3.3 Price Fluctuation 5 3.4 Rationing and shortage gaming 5 4 Impact of Bullwhip Effect 6 4.1 Manufacturing Cost 6 4.2 Inventory Cost 6 4.3 Replenishment Lead Time 6 4.4 Transportation Cost 6 4.5 Level of Product Aavailability
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Barilla SpA is an Italian pasta manufacturer comprised of 7 divisions: 3 pasta‚ bakery‚ bread‚ catering‚ and international. By 1990‚ Barilla had become the largest pasta manufacturer in the world. The company ships its pasta to one of two central distribution centers (CDC) where it is bought by individual supermarket distributors called "grande distribuzione" (GD for larger supermarkets) and "distribuzione organizzata" (DO for smaller‚ independent supermarkets). During the late 1980s‚ the distributors
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Effects on Same Sex School Does anyone think about what is same sex school? Why any students want to go there? Both single sex school and co-ed school have advantages and disadvantages. If we were parents‚ we would think that which school is better to let children go. Some of them do not care about the issue‚ but it may happen some problems to their children. In other word‚ if parents think about it carefully‚ their children will be successful. Going to same sex schools have had several positive
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Executive Summary My decision is to implement Just in time distribution (JITD) to Barilla Distributors to reduce distribution costs‚ inventory levels and manufacturing costs. This would enable Barilla to improve relationships with their distributors and provide them with more objective data so that they can improve their own planning procedures. Barilla Operations will have more control on what is being shipped out so that shipments can be planned to optimize full loads. Manufacturing costs can
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Barilla SpA (A) Case Study Analysis 2 Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits and drawback of this program? Brando Vitali‚ Barilla’s director of logistics‚ proposed the idea of Just-In-Time Distribution (JITD) in the 1980’s as an alternative to Barilla’s traditional practice of delivering products to their distributors (Hammond‚ 1). Instead of distributing Barilla’s products based on the orders the distributors
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domestically over 2000 pasta manufacturers in Italy. Declining margins. * Pasta market is extremely price sensitive. * Barilla is the market leader in Italy and is the industry’s largest manufacturer. * Supply chain represents approximately 55-58 calendar DOH of dry goods (30 in the CDC‚ 14 at the Distributor‚ 11-14 at the Supermarket or Independent Shops) Competitive Strategy * Barilla is the largest pasta manufacturer in the world (35% of market in Italy and 22% of market in Europe) * Also 29% of
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Executive Summary The Italian Pasta Manufacturer‚ Barilla SpA‚ is experiencing inefficiencies and increases in cost due to variability in demand from its distributors. Giorgio Magialli‚ the Director of Logistics‚ wants to implement a Just-In-Time Distribution (JITD) system to gain more control. The JITD system was originally proposed by Barilla’s former Director of Logistics‚ Brando Vitali. The new system is untraditional and is being rejected by both distributors and Barilla’s internal departments
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Inc. o In 1979 Grace sold the company back to the original owner (Pietro Barilla) - Barilla had a successful return - ANNUAL GROWTH RATE OVER 21% - In 1990 Barilla made up o 35% of pasta sold in Italy 32% Barilla brand 3% market share Voiello & Braibanti brand o 22% in Europe o Barilla held 29% share of Italian bakery-products market - In 1990 Barilla organized into 7 divisions o 3 pasta divisions Barilla Voiello Braibanti o Bakery Products Division Manufacturing medium
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ACADEMIA BARILLA- HARVARD BUSINESS SCHOOL CASE STUDIES Parma‚ Italy - January 31‚ 2007 - Harvard Business School has selected Academia Barilla for an in-depth look into its business in the prestigious annals of Harvard Business School’s business case studies. Less than three years after its founding‚ Academia Barilla is one of the few Italian companies to ever get chronicled by Harvard. The Harvard Business School business case study for Academia Barilla recounts the last 10 years of the development
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