Barilla SpA Part A Barilla Case Study Phil Kaminsky David Simchi-Levi kaminsky@ieor.berkeley.edu Philip Kaminsky Edith Simchi-Levi Barilla SpA is the world’s largest pasta manufacturer The company sells to a wide range of Italian retailers, primarily through third party distributors During the late 1980s, Barilla suffered increasing operational inefficiencies and cost penalties that resulted from large week-to-week variations in its distributors’ order patterns McGraw-Hill/Irwin
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Barilla Spa Case Study Analysis Solution 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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|Barilla SpA (A): Case Study | | | |Module 1 Session 5 - Supply Chain Inventory Management | Table of Contents Executive Summary 1 Issue Identification
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CASE REPORT BARILLA SpA (A) PREPARED FOR PREPARED BY DATE | | | | | |Section |TITLE
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Barilla spA case analysis Barilla SpA, an Italian pasta manufacturer, is experiencing amplified levels of inefficiencies and rising costs due to variability in demand from its distributors. The main problem addressed in this case is how to effectively implement JITD system suggested by Giorgio Magialli, the Director of Logistics by resolving the issue of gaining control over the fluctuating demand. Barilla has a very complex distribution network including independent third party distributors
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Barilla Case 1. Diagnose the underlying causes of the difficulties that the JITD program was created to solve. What are the benefits and draw backs of this program? JITD was created to solve the problems of effects of fluctuating demand (Bullwhip Effect) and stock outs issue that strain Barilla’s manufacturing and logistics operations. Benefits: Barilla can make better delivery decisions and improve its demand forecasts, be more effectively meet end-consumer’s need and more evenly distribute
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For years Barilla was successful in selling their brand of fine pastas but when a shift in demand for products resulted in items being sold out, Barilla tried to operate like a responsive supply chain which did not work for this functional product. Based on Fisher’s 2x2 model Barilla’s supply chain should be run as a functional product with an efficient supply chain. Barilla should run a more efficient supply chain which can be achieved through the use of the Just-In-Time-Distribution (JITD) program;
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Executive Summary Barilla SpA, an Italian pasta manufacturer is experiencing problems in manufacturing and distribution systems caused by fluctuations in demand. To eliminate these difficulties Giorgio Maggiali, the Chief of Barilla’s Logistics Department, has been trying to implement the Just-In-Time-Distribution, further referred as JITD, system proposed by his predecessor Brando Vitali. JITD can be called a remake of popular “Just-In-Time” manufacturing concept. Although Maggiali has been trying
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Barilla Case 1. What are the underlying causes of the difficulties that the JITD program was created to solve? JITD was created to solve the problems of a) effects of fluctuating demand (Bullwhip Effect) b) stockouts issue that strain Barilla’s Manufacturing and logistics operations. 2. What are the benefits and drawbacks of this program? Benefits: Barilla can make better delivery decisions and improve its demand forecasts, be more effectively meet end-consumer’s need and more evenly distribute
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SUPPLY CHAIN INVENTORY MANAGEMENT SUBMITTED BY A CASE STUDY OF BARILLA SpA. Table of Contents 1. Executive summary 2. Body of the repot 3. conclusion Executive Summary Barilla SpA is the case study that I will be examining in this paper presentation. I will be looking critically into some of the issues why the Just-in-time-distribution (JITD) program that was proposed by Brando Vitali who had served as Barilla’s directors of logistics before Maggiali had met a strong resistance
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