Home Work: Chapter 5The Value of InformationStudent Name: Shaheen SardarDepartment: Industrial and Management Engineering, Hanyang University, South Korea.Home Work Chapter 5: The Value of Information:Discussion Questions and Answers: Designing and managing the supply chain: Concepts, strategies, and cases.Book Reference: Simchi-Levi, D., Kaminsky, P., and Simchi-Levi, E., & (2008). Designing and managing the supply chain: Concepts, strategies, and cases (3rdedition). United-States: McGraw-Hill.
Problem 1:Answer these questions about the Barilla case study?a) Diagnose the underlying causes of the difficulties that the JITD program was created to solve? What are the benefits and drawbacks of this program?Answer (a):JITD was created to solve the problems of a) effects of fluctuating demand (Bullwhip Effect) b) stockouts issue that strain Barilla’s manufacturing and logistics operations.Benefits: Barilla can make better delivery decisions and improve its demand forecasts, be more effectively meet end-consumer’s need and more evenly distribute the workload on its manufacturing and logistics systems. The inventories of Distribution Centers (customers) could be reduced. Drawbacks: Sale Persons lost their incentives, because the sale will be predictable or flat. It will be difficult to run trade promotions with JITD. Cost might increase due the needs to increase internal inventories It might create stockouts problem instead of solving it. Customers need to improve their equipment (computer, bar-code scanner, etc) and share their sales data that they are reluctant to do. The customers might work with other vendors for their extra space for inventories.b) What internal conflicts or barriers does the JITD program create? What causes these conflicts? How would you deal with this?Answer (b):The implementation will take away some needs for sale and marketing that Barilla depend so much for their success as documented in the case study. The sale will be flat that takes away the bonus for the sale persons and since the trade promotions will be difficult to run with JITD, the function of marketing will be reduced somewhat. I am not Donald Trump, so I will provide opportunities for both sale and marketing personnel thatmight be impacted by this program do cross training for other company’s functions and provide a newway of doing sale or trade promotion using JITD as a tool. The incentive or bonus for sale personscould be fixed and be more customer service oriented.c) As one of Barilla’s customers, what would your response to JITD be? Why?Answer (c):I will be gladly accepted the program. The reasons: The program if implemented can smooth out the bullwhip effect and reduce the needs to monitor goods and replenish them that can save the cost for inventories and warehouse space.
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