Session7Barillahandout - Supply Chain Modeling...

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Supply Chain Modeling Session 7: Barilla SpA Atalay Atasu
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Barilla’s Supply Chain Dry Product Factories Barilla Owned Warehous es Grand Distribuzione (GD) 2 CDC Distribuzione Organizatta (DO) Supermarket Chains Independent Supermarket s Small Shops (Signora Maria) 35% 65% JITD Proposal 800 SKUs 1 month inventory 100,000 One distributor: -150 SKUs -2 weeks inventory One supermarket: -10-12 days inventory 10% 90%
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Demand Throughout the Supply Chain consumers supermarkets Dist. Org. (DO) CDC
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Causes of Variability?
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Impact of Variability
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How Does JITD Help?
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Different Perspectives
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Bullwhip Effect: amplification of variability as we move away from market towards supply Causes of the Bullwhip: no communication + order processing and shipping delays Summary Internal Barilla incentives and no communication Demand fluctuations in the supply chain Increased supply chain costs (inventory costs + low utilization of resources) JITD Proposal: change structure of order and deliveries Need to overcome
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This note was uploaded on 01/25/2011 for the course MGT 4803 taught by Professor Staff during the Spring '08 term at Georgia Institute of Technology.

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Session7Barillahandout - Supply Chain Modeling...

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