Scribd Logo
Upload

Welcome to Scribd!

  • Barilla SpA Case

    Uploaded by

    Vineet Jhawar
    10 views7 pages
    Barilla SpA is considering implementing a Just-In-Time Distribution (JITD) system to address issues caused by demand fluctuations from distributors. The current system leads to production and distribution inefficiencies as well as increased inventory costs. JITD would involve joint optimization between Barilla and its suppliers and distributors to better coordinate orders and amplify demand signals. However, implementing JITD also presents challenges related to coordination between internal and external stakeholders that would need to be addressed.

    Original Description:

    PPT of the Case

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Barilla SpA is considering implementing a Just-In-Time Distribution (JITD) system to address issues caused by demand fluctuations from distributors. The current system leads to production and distribution inefficiencies as well as increased inventory costs. JITD would involve joint optimization between Barilla and its suppliers and distributors to better coordinate orders and amplify demand signals. However, implementing JITD also presents challenges related to coordination between internal and external stakeholders that would need to be addressed.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views7 pages

    Barilla SpA Case

    Uploaded by

    Vineet Jhawar
    Barilla SpA is considering implementing a Just-In-Time Distribution (JITD) system to address issues caused by demand fluctuations from distributors. The current system leads to production and distribution inefficiencies as well as increased inventory costs. JITD would involve joint optimization between Barilla and its suppliers and distributors to better coordinate orders and amplify demand signals. However, implementing JITD also presents challenges related to coordination between internal and external stakeholders that would need to be addressed.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 7

    Barilla SpA Case

    OPIM 5110

    Evaluation of JITD Proposal


    Why should this work?
    What are the underlying
    economics?
    Who will Benefit?

    Coordination Concept:
    Sequential, Myopic optimization
    Supplier

    Customer

    Joint Optimization
    Supplier

    Customer

    Amplification of Orders Placed on


    Suppliers
    Barilla
    Plant

    Barilla
    DC

    Distributor

    Retailer

    Consumer

    Causes and Cost of Demand


    Fluctuation
    Causes of Fluctuation
    Poor Communication
    Promotions
    Volume Discounts
    Lead Times
    Number of SKUs
    Sales Compensation
    Stockouts
    No volume Constraints

    Cost of Fluctuation
    Production Inefficient
    Finished Goods Inventory
    Distribution Inefficiency
    Workers
    Equipment
    Trucks

    Complexity
    Distributor Inventory

    JITD Implementation problems


    Causes
    External

    Internal

    Action Perspective

    Perspective
    Distributors

    Who should have decision rights?


    Type of Information to be transferred
    Size
    Capability
    Geography

    Barillas

    Causes of Problems

    Transportation discounts
    Volume discounts
    Promotional activities
    No minimum or maximum order quantities
    Product proliferation
    Long lead time
    Poor customer service rates
    Sales compensation system

    You might also like