Barilla - Rev. 3/08 Vendor Managed Inventory: Barilla SpA...

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Barilla Case, page 1 Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren Hausman Vendor Managed Inventory: Barilla SpA Rev. 3/08
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Barilla Dry Product Factories Barilla CDCs Grande Distribuzione Organizzata Chain Supermarkets Independent Signora Maria Shops 18 Barilla-Run Depots 35% TL LTL 65% 90% TL= Delivery in truck-load quantities. LTL= Delivery in less-than-truck-load quantities 10% Barilla Supply Chain
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Barilla Case, page 3 Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren Hausman 0 100 200 300 400 500 600 700 800 900 Week Sales at Cortese Northeast DC
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Barilla Case, page 4 Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren Hausman 0 100 200 300 400 500 600 700 800 900 Mean = 300 Quintals Std. Dev. = 227 Quintals Orders from Cortese Northeast DC to Pedrignano CDC
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Barilla Case, page 5 Laura Rock Kopczak, Panos Kouvelis, Hau Lee, Warren Hausman Information Distortion: The Bullwhip Effect • Order variability is amplified up the supply chain: upstream is worse • Apparent information distortion: what you see is not what they face • Bullwhip, whip-saw, whip-lash effect; or acceleration principle; or the Beer Game phenomenon
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Barilla - Rev. 3/08 Vendor Managed Inventory: Barilla SpA...

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