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Answer 2

JIDT was designed to make sure that Barilla did not hold any excess inventory.
Holding excess inventory would add to the inventory carrying cost, thus adding to
the total cost. As there was fluctuation in weekly demand, objective of JIDT was to
reduce distribution cost, inventory levels and manufacturing costs….stockout
The causes of these difficulties were the unanticipated fluctuations in demand of
pasta by the customers
Benefits of JIDT:




Low inventory carrying cost
Reduction in manufacturing cost
JIDT would lead to more floor space as the goods would arrive as and when
needed
No fear of goods being spoiled
As JIT is based on pull system the goods will be delivered as per customer
needs

Drawbacks of JIDT:


Unanticipated demand will leave low goods for the customers
Not being able to adjust the shipping schedule with the changes in the selling
patterns
In case the distributor manages to sell all the products, this would give
competitors an opportunity to provide their goods to the distributors.
Distributors would not turn down this opportunity as more products they get,
more they will sell
Risk of stock out would increase in case of any unforeseen circumstances
such as labor strike, natural calamity, etc.

Answer 3

Conflicts that are likely to be created within Barilla by the JITD program are as follows:



JIDT may also lead to reduction in employees within Barilla. This may result in
employees sabotaging work in order to keep their place
Promotions of Barilla products cannot take place with JIDT in place as the
goods would be prepared and when needed
JITD sales structure would reduce the bonus for the employees
Experienced employees may leave the organization as they may not
understand the concept of JIDT. This would mean that new employees will
have to be trained

 As the demand is based on the customer forecast. there is little incentive for the workers to work hard and push themselves to sell the items .