2 wks of inventory held approx stores generally not

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Unformatted text preview: order quantities – Inventory Management Check the shelf for products needed Check Approx. 2 Wks of inventory held Approx. – Stores generally not equipped with Stores technology technology – Most retailers carry a product in one Most packaging option (at most two). packaging Distribution Demand Demand Demand varies greatly from week to week Demand Barilla is operating blindly Barilla – Proactive? NO! Proactive? Demand is unpredictable. Demand No records of prior information No – Reactive? NO! Can’t modify equipment with enough time to turn around Can the product. Strains manufacturing and logistics operation Strains – – – – Over time costs Transportation costs Transportation Inventory holding costs Customer Satisfaction Distributor Demand Demand Pasta Power! Pasta What is causing the demand fluctuations at Barilla? Causes of Demand Fluctuations Fluctuations Time availability of information Time Process inefficiencies and variability Process No inventory information No Lead time and lead time variability Lead Too many SKUs Too No forecasting No Lack of sophistication of distributors Lack Costs Attributed to Demand Fluctuations Demand Inventory costs Inventory Changeover costs Changeover Order costs Order Overcapacity Overcapacity Perishability Perishability Overtime costs Overtime Lost customers Lost Supply Chain Supply Drivers Efficiency Responsiveness Supply chai...
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This document was uploaded on 03/27/2014.

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