Barilla Case Study The Underlying Factors In Operation...

case analysis | MGSM890 Operations Management | | Thursday 9 AM class | Term 3, 2012 Deepika Choudhary | 42621186 | | | Question 1. What underlying factors are driving the distributors order patterns to look the way they do in Exhibit 12, and the DC sales, inventory and stock-out levels in Exhibit 13? The underlying factors that are driving the distributors order patterns to look the way they do are primarily due to extreme demand fluctuations where it was week to week variation in distributors order patterns due to which Barilla suffered increasing operational inefficiencies and cost penalties. The major reasons that speak for†¦show more content†¦This reflects lack of Dos efficient job servicing to its retailers * Plant has high product change over costs because Barilla has either inefficient production or excess finished goods inventory * Utilization of central distribution is low in terms of workers and equipment’s Question 2. How might they be addressed? Will the proposed JITD system solve the problem? The underlying factors in the traditional approach of order fulfillment had a direct impact on manufactures and retailers in the form of thinning margins. Thus, to address these factors an alternative approach of product delivery was crucial and also to take costs out of distribution channel without compromising service. This was introduced by Brando Vitali’s JITD (Just-In-Time-Distribution) proposal, which focused solely on dry products to be sold through distributors. This approach was also expected to radically change the way in which Barilla’s logistics managed product delivery with JITD bringing in its two key concepts of: replacing sequential optimization with global optimization and eliminating some of the â€Å"false† economies that drive traditional ordering processes. The major challenges ofShow MoreRelatedEssay on Business Analysis1644 Words   |  7 PagesBusiness Analysis Introduction: - Barilla has encountered many areas of their manufacturing and distribution processes that, for many reasons, could be vastly improved. To try to improve these areas, top logistics management decided to try to implement a JITD (just in time distribution) system, similar to VMI (vendor managed inventory). The management felt that they could cut back on problems such as wild demand swings and stock outs by using this method. TheirRead MoreBarilla Case Study3439 Words   |  14 PagesBarilla SpA * The spaghetti incident - Maastricht University School of Business and Economics International Executive Master of Finance and Control 20 April 2012 Course – Logistics Prof. Dr. Allard van Riel Pauline Henselmans Jetse van de Kamp Ze Zhu Thiago Barros de Oliveira Rene Lorrier Contents 1. Reasons for the increase in variability in demand in Barilla’s supply chain 3 1.1 Distributed inventories, local optimization 3 1.2 Lack of inventory information andRead MoreBarilla Spa Case Study Analysis3647 Words   |  15 PagesBarilla 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 Read MoreBarilla Case Study: Tackles Mainly In Its Supply Chain And The System Within It2899 Words   |  12 PagesAbstract The Barilla SpA case study tackles mainly about its supply chain and the system within it. Starting from the manufacturing of the product up to the distribution and selling of it. JITD, a distribution system which might possibly minimize the cost and inventory of the company is being considered to implement in the company’s distribution system to address the fluctuation in their demand. Advantages and disadvantages of JITD were compared. Introduction Barilla SpA is a pasta manufacturingRead MoreCase Study20441 Words   |  82 PagesFaculty of Technical Science Title â€Å"SUPPLY CHAIN MANAGEMENT† Graduation Project Course: PRODACTION SYSTEM CONTROL Skopje - July, 2011 1 Faculty of Technical Science Title â€Å"SUPPLY CHAIN MANAGEMENT† Graduation Project Course: PRODACTION SYSTEM CONTROL Mentor: Prof. (Tarik CAKAR) Performed by: Enis SELAM, Student ID No.08/09.20 Enis_slm@hotmail.com Skopje, July, 2011 2 BRIEF CONTENTS Preface xiii Part I -- Building a Strategic Framework to Analyze Supply Chains