Barilla SpA(A)

ANSWER MUST BE TYPED, HAND WRITTEN ANSWER

WILL NOT BE ACCEPTED

Case Questions

1. What are the causes of fluctuation? (10 points)

_No constraints in order quantities for distributors

__________________________________________________________

 _Inaccurate forecasts due to the use of a weekly-review inventory system by

distributors
__________________________________________________________

 __ limited communication between the sales representative and the Grand

distributors’
warehouse________________________________________________________
_____

 _ volume discount to induce the distributors buying more

_____________________________________________________________

 ___Long order lead times between order and

_______________________________delivery____________________

 __Excessive promotional activities

_______________________________________________________________

 commission induces sales representatives to encourage distributors to order more

______________________________________________________________

 _________________________________________________________________

 _________________________________________________________________

 _________________________________________________________________

 _________________________________________________________________

 _________________________________________________________________
2. What are the costs of fluctuation? (10 points)

Increased inventory holding cost

 __Difficult to anticipate the demand wings

________________________________________________

 __Poor product delivery management

_______________________________________________

 ________________________________________________________________

 ________________________________________________________________

 ________________________________________________________________

 ________________________________________________________________

3. What are the benefits of the JITD proposal? (10 points)

 _ Produce the actual demanded quantity so that inventory and manufacturing costs
______________________can be reduced ____________________________________

 Better demand forecasting ensures robust and responsive supply chain

 Increased supply chain visibility ?

______________________________________________________________

4. As one of Barilla's customers what would your response to JITD? Why? (10 points)

 _I may not be convinced by JITD because I need to blindly trust Barilla’s ability to
keep the stores stocked at a proper level. If _____________Barilla does the forecast
wrongly, it will lead to severe problems including being over-stocked or under-stocked at
times _________________________________________

 __ Most retailers do not use any tracking such as Radio Frequency Identification
Device (RFID) or barcode and rely on manual counting of inventory and shelf space.
Using JITD will help these retailers understand their selling patterns as it eradicates some
of the demand estimation up the supply chain, which will eliminate the need for tedious
forecasting. ______________________________________________________________
 _ With a JITD program in place, more frequent deliveries from the distributor are

possible, resulting in an overall store inventory reduction.
_______________________________________________________________
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5. Who should have the decision rights, Barilla, distributors, or partners? (10
points)

 ________________________________________________________________

 ________________________________________________________________

6. What are the internal problems? (10 points)

 __Sales representatives feared reduction in responsibilities

 ___ _____________________________________________________________

 _Lack of infrastructure____to handle JITD

__________________________________________

 __________________________________________________________

 ________________________________________________________________

 ________________________________________________________________

7. What are the external problems? (10 points)

 __Uncovenied distributors
______________________________________________________________

 ____Lack of trust in Barilla’s inventory management

____________________________________________________________

 ____ Distributors feared reduction in responsibilities

____________________________of managing inventory
________________________________

 ____Perceived power transfer to Barilla

____________________________________________________________

 ________________________________________________________________

 ________________________________________________________________

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integration

https://www.scribd.com/doc/7325445/Barilla-SpA-Case-Solution

8. What actions do you recommend? (20 points)

 ____Demonstrate the benefits of JITD to the distributors such as conducting

experiment at one of the distributor sites
____________________________________________________________

 _______________________________________________________________

 ________________________________________________________________

 ________________________________________________________________

 ________________________________________________________________

 ________________________________________________________________

9. What have you learnt from this case? (10 points)