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Unformatted text preview: Barilla SpA Solution 1. Read Barilla SpA Case Study (A), (B), and (C) (See the following page for instructions on how to obtain a copy of the case study.) 2. Answer the Barilla SpA (A), (B), and (C) questions for discussion. Questions for Discussion, Barilla SpA (A): (a) Briefly describe Barilla’s supply chain. A: Barilla plants produce, move product to Barilla central distribution centers (CDCs) and to Barilla depots, the CDCs sell mainly to distributors (GDs and DOs), who in turn sell to the retailers, and the depots sell directly to the retailers. (b) How does the consumption rate of pasta in Italy behave over time? A: Almost constant. (c) Which problems is Barilla experiencing? A: (1) Large variability in demand (orders) from distributors — bullwhip effect. (2) Distributors not providing good service to the retailers, often running out of stock, and thus hurting Barilla product in the market. (d) What are the underlying reasons for the problems that Barilla is experiencing? A: (1) Barilla does not have demand information from the downstream members of the supply chain (retailers and consumers). (2) Poor demand forecasting by some distributors. (3) Increase in number of products make forecasting more difficult. (4) Old-fashioned, regular promotions caused wide fluctuations in sales, whereas consumption of pasta is very uniform over time. (5) Long lead times to fill distributors’ orders. (6) Sales representatives were evaluated based on meeting sales targets during promotional, or “canvass” periods....
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- Spring '10