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Problem
#37796

Supply Chain Management Case Study

Barilla Spa (A) Case Questions


1. Diagnose the underlying causes of the difficulties that the JITD program was created to solve.  What are the benefits and drawbacks of this program?

2. What conflicts or barriers internal to Barilla doe the JITD program create?  What causes these conflicts?  As Giorgio Maggiali, how would you deal with these?

3. Why are Barilla's customers so resistant to the JITD idea?  How might Maggiali be more successful in persuading customer to at least try the JITD program?

4. In the environment in which Barilla operated in 1990, do you believe JITD would be feasible?  Effective?  If so, which customer would you target next?  How would you convince them that the JITD program was worth trying?  If not, what alternatives would you suggest to combat some of the difficulties that Barilla's operating system faces?

In general, if one party is to make the inventory replenishment decisions for the system, who should it be?  Why is it Barilla who is making the decision?  Why doesn't Barilla pass information to the distributor and let the distributor make the "system-optimal" decision?

To see the case study, go to the web site below:

http://home.comcast.net/~wade.mckelvey/barilla.pdf

Attached file(s):
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Barilla Spa.doc  View File

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Barilla Spa.doc
Barilla Spa (A) Case Questions

Diagnose the underlying causes of the difficulties that the JITD program
was created to solve. What are the benefits and drawbacks of this
program?

What conflicts or barriers internal to Barilla doe the JITD program
create? What causes these conflicts? As Giorgio Maggiali, how would
you deal with these?

Why are Barilla’s customers so resistant to the JITD idea? How might
Maggiali be more successful in persuading customer to at least try the
JITD program?

In the environment in which Barilla operated in 1990, do you believe
JITD would be feasible? Effective? If so, which customer would you
target next? How would you convince them that the JITD program was
worth trying? If not, what alternatives would you suggest to combat
some of the difficulties that Barilla’s operating system faces?

In general, if one party is to make the inventory replenishment
decisions for the system, who should it be? Why is it Barilla who is
making the decision? Why doesn’t Barilla pass information to the
distributor and let the distributor make the “system-optimal”
decision?

To see the case study, go to the web site below:

HYPERLINK "http://home.comcast.net/~wade.mckelvey/barilla.pdf"
http://home.comcast.net/~wade.mckelvey/barilla.pdf

Solution Summary

This posting provides detailed analysis of the Barilla Spa, a company trying to solve a supply chain problem. It discusses issues such as poor forecast capabilities, batch order, lead-time, price variations and level of inventory. Implementing a good JIT program could solve bullwhip faced by the barilla. The solution discuss in details what are the benefits and disadvantages of such an approach and deals in detail with the specific problems in the case. In all a comprehensive solution to make students understands how to solve cases involving complex issues

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