Barilla Spa Essay - 1378 Words

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 the JITD program? 4. In the environment in which Barilla operated in 1990, do you believe JITD would be feasible? Effective? If so, which customer would you target next? How would you convince them that the JITD program was worth trying?†¦show more content†¦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 the JITD program? 4. In the environment in which Barilla operated in 1990, do you believe JITD would be feasible? Effective? If so, which customer would you target next? How would you convince them that the JITD program was worth trying? If not, what alternatives would you suggest to combat some of the difficulties that Barilla’s operating system faces? In general, if one party is to make the inventory replenishment decisions for the system, who should it be? Why is it Barilla who is making the decision? Why doesn’t Barilla pass information to the distributor and let the distributor make the â€Å"system-optimal† decision? To see the case study, go to the web site below: http://home.comcast.net/~wade.mckelvey/barilla.pdf addfslknfmnds,gknsnaklnglnslnglsdnflgnlasnlgn;sNGN;dsnA;FNNSDLGNASD MS M,Show MoreRelatedBarilla Spa Questions1899 Words   |  8 Pagesseen in Exhibit 12? What are the underlying drivers of the fluctuation we see in this exhibit? Your analysis should consider full range of implications to the entire channel, and not just Barilla. Per exhibit 12 the impact of order fluctuations are as follows: - Creates a bullwhip effect at Barilla. - Resource and material planning becomes cumbersome and inefficient. - Might increase the lead time because of the bullwhip effect. - Reduces overall operationalRead MoreCase Analysis of Barilla Spa2138 Words   |  9 PagesCASE ANALYSIS OF BARILLA SPA Problem seen in Barilla SpA by Giorgio Maggiali-Director of logistics is the demand fluctuations imposed on the company manufacturing distribution system. Brando Vitali which was an earlier Director of logistics in Barilla SpA proposed an idea of Just- in- time distribution (JITD) for this problem. Instead of Distributors giving orders according to them, company should deliver its products on time by its own logistics system on the basis of end consumer needs. ByRead MoreBarilla Spa - Case Study1354 Words   |  6 Pages[Type the company name] | Barilla Sp(A) Case Study | | | | | Barilla JITD Case Study Just in time distribution (JITD) was designed to address the fluctuating demand of products that created additional costs in production, scheduling, and transportation. Barilla was to blame for several of these underlying problems. For example, Barilla offered transportation discounts, volume discounts, 10-12 promotions throughout the year, as well as no maximum or minimum constraints on ordersRead MoreLong Summary for Barilla Spa (a)2386 Words   |  10 PagesInc. 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 ï‚ § 32% Barilla brand ï‚ § 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 ï‚ § Barilla ï‚ § Voiello ï‚ § Braibanti o Bakery Products Division ï‚ § Manufacturing mediumRead MoreBarilla SpA1447 Words   |  6 Pagesï » ¿ CASE REPORT Barilla SpA Part 1 – Executive Summary The most important issue Barilla faces is the variability in distributor’s demand or order patterns even though consumer demand is relatively stable. To date, implementation of the Just in Time Distribution System (JITD) has not been successful. It has been resisted both internally and externally with distribution network. The company either can implement JITD or it should reject the strategy and develop a new one. Rather thanRead MoreBarilla Spa - 81657 Words   |  7 Pagespatterns. 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 toRead MoreBarilla Spa - 10765 Words   |  4 PagesBarilla 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 distributorsRead MoreBarilla Spa Case1179 Words   |  5 PagesBarilla SPA Operations amp; supply chain management Case study 2012 1 Is there any evidence that Barilla faces the bullwhip effect? If so, what causes of the bullwhip effect are present? Barilla has two products lines, â€Å"dry products representing 75% of sales† and â€Å"fresh products representing 25% of sales†. Products are shipped from plants to one of the two central distribution centers (CDCs). Each CDC held about a month’s worth of dry product inventory. There are three typesRead MoreCase Barilla Spa (a)1345 Words   |  6 PagesCase Barilla SpA (A) Discussion Question 1. Answer these questions about the Barilla case study; a. Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits of this program? The main underlying cause of the difficulties that the JITD program was created to solve is the effect of fluctuating demand which can be divided the root causes as per below. * Transportation Discounts * Volume Discounts * Promotional Activities Read MoreEssay on Barilla Spa Case1268 Words   |  6 PagesBarilla SpA Case Table of Contents Executive Summary 2 Issues Identification 3 Environmental and Root Cause Analysis 3 Alternatives or Options 4 Recommendation and Implementation 5 Monitor and Control 6 Conclusion 6 Executive Summary Barilla’s high stock out rates along with large average inventory numbers are the main reasons why Maggiali is looking to continue on with Vitali’s dream of implementing the Just In Time Distribution system. However, faced with great external resistance