BARILLA CASE STUDY JITD
Once this is brought under control, many other problems will be solved. They could convince the 6 independent retailers of the value in the JITD program when they ordered new equipment. The JITD system has the potential to substantial reduce costs if it is implemented correctly. Check it out goo. Operations and Supply Management The Core. They need included as equitably as possible in balancing their system to respond to fluctuating demand.
How about receiving a customized one? I barillla also give the factory the time it needed to change production runs to fill the orders. Barilla and their stakeholders would benefit bwrilla from analyzing the sales data and decomposing it using least squares regression to help normalize the seasonal and trend factors attributable to the severe fluctuations. This was causing problems as the sales reps would try and push more products during the promotional period to get a jifd and were not able to sell as much during non-promotional periods.
The logistics people seemed most willing to try the JITD program when Maggiali approached them in It would also improve operations for Barilla and their customers. Barilla should not only forecast demand but also should try to shape and influence it by marketing using barilpa to determine the needs and expectations of the consumers and designing products to satisfy them. The sales force needed to understand that the JITD program could be promoted as a selling tool and not a threat stuy their sales.
Placing limits at the various stages, could act as a restoring force to stabilize the volatile demand by balancing the order frequency with the fill frequency. These strategies heavily influenced the demand. The JITD program would also allow distributors and retailers to carry more variety with fewer inventories. Would it be effective? Demand fluctuations Bullwhip effect. As Giorgio Maggiali, how would you deal with these?
Barilla Spa Case Study Analysis Essay
Sales Representatives Incentives based on the amount of the products that they sold to the distributors. There would be no need for them to place an order and with a week or more of delay before it to be delivered.
This would eliminate Barilla scrambling to meet demand swings from the distributor. This would each stakeholder at every stage in the value chain to schedule for those causal relationships and better absorb the demand Jacobs and Chase, This csse was clearly not working.
Barilla Spa Case Study Analysis Essay Example For Students | Artscolumbia
In the environment in which Barilla operated indo you believe JITD or a similar kind of program would be feasible? Over 30 successfully finished orders. A limited time offer!
In the event that the sales force and distributors continue to be opposed to the JITD program, we suggest that Barilla turn its attention to improving their manufacturing operation. Barilla could benefit from implementing several key aspects discussed in our textbook with regards to creating lean manufacturing processes. The program could decrease their inventories and improve their delivery rate to their stores.
If you need this or any other sample, we can send it to you via email. Barilla and the distributors can work as a team and plan on different issues.
Get custom essay sample written according to your requirements Urgent 3h delivery guaranteed Order Now. The sales and marketing organizations were very vocal in expressing their opposition to the plan and how it could adversely affect their departments Hammond, 9.
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Therefore, the manufacturing to support the JITD program would take an extreme effort at redesigning their production methods, schedules and learning how to be more agile, more flexible and lean. This will streamline the information flow, reduce uncertainty in demandreduce the lead time, and decrease both finished and raw material inventory, thus making the system efficient and reducing the overall cost.
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The manufacturing sequences of pasta production made it very difficult to produce particular types of pasta that had been sold out due to unexpectedly high demand. Benefits to the JITD program include delivering only what was shudy to the distributors to avoid large inventories, limiting the variation in order swings from week to week for dry products, and improving operations to determine quantities and delivery schedules.
As the s progressed, Barilla has been facing huge variability in demand essentially affecting dry products, such extreme demand fluctuation strained casse manufacturing and distribution network of the company see Exhibit 12 Cost of having to hold high inventory.
Vitali hoped his innovative idea would solve the tremendous fluctuation that occurred from week wtudy week in the number of Barilla dry products being ordered by the distributors. Different sizes of pasta were also made in different plants based on the variety of equipment required for pasta production Hammond, 3.