Since the manufacturer cannot anticipate which lines will be in greatest demand, lead time is increased, as the manufacturer cannot tailor production to the increased demand until determining which line to produce.
How to Write a Summary of an Article? If so, which customers would you target next? These lead times essentially result in a whip-lash effect, in which the factories over-react to stock outs. Operations Improvement Movements Blackburn ed.
Their responsibilities will be changed from trying to sell high volumes to selling the CITED idea and to maintain a good relationship Ninth the distributors.
A key consideration of the JITD strategy was to let end customer demand. With the JITD, every day each distributor would have to provide Barilla with data on what products it had shipped out of its warehouse to retailers during the previous day as well as the current stock level of each Barilla SKU.
Barilla and their customers are now realizing that they do not have enough room in their stores and warehouses to carry the very large inventories manufacturers would like them to.
They might resist to the new system because they are unfamiliar with the system.
With accurate delivery, retailers only need to maintain minimum amount of inventory and thus reduce the inventory management cost. The Impact of Fluctuating Demand on Operations Fluctuating customer demand results in higher inventory for distributors who carry a cross-section of product lines, as demand among product lines fluctuates in unpredictable ways.
Production cycle would be damaged significantly, and the availability of the product will be reduced. Rewards should be established as incentives to distributors and retailers to better document sales volume.
Supermarket managers were placing orders more frequently on a daily basis which would reduce the bullwhip effect. The distributors would order from Barilla on a periodic basis weekly since most of them used periodic-review inventory systems.
Implementing a good JIT program could solve bullwhip faced by the barilla. Also, Barilla should use promotions with short terms to create set periodic demand for promoted products.
It would not be feasible or effective in our time today. Also, convince them that the more money he company saves, the more the company will profit; therefore a higher bonus can be given to employees.
Furthermore, the extensive product offerings make it difficult to determine if certain lines are purchased as a substitute for others.
Our overall recommendation is that a JITD delivery system is premature, and instead we recommend building a new information management system to resolve the information bottleneck between customer and the manufacturer and align incentives at each stage in the supply chain to reduce inventories.
Based on a study by the MIT commission on industrial productivity. The strain was being felt at both ends of the supply chain. Distributors distrust giving Barilla info.
Very detailed on comprehensive. Internal and Barilla operations case Barriers to Implementation of JITD First of all, there is an information bottleneck just past the customer, and the information relating to amount and timing of demand does not flow directly up the Supply Chain.
This could invest in electronic barcode readers and tracking technology. The sales representatives will be the first ones to help solve any problems that the distributors has, and they will be involved in other logistic responsibilities that the CITED will require.Case Presentation Barilla SpA Introduction – Strained Manufacturing and Logistics operations* – Poor Product delivery management – Thinning retailer/distributor margins – Increased Inventory Holding costs – Impossible to anticipate Demand swings – Changing customers due to lack of storage space.
Representing a broad range of management subjects, the ICMR Case Collection provides teachers, corporate trainers, and management professionals with a variety of teaching and reference material. The collection consists of Operations case studies and research reports on a wide range of companies and industries - both Indian and international, cases won awards in varies competitions, EFMD Case.
Introduction to Operations Management 1. Introductions 2. Housekeeping a. SloanSpace b. Course Introduction First case write-up 20% Food Distribution Barilla Pasta eSupply Webvan Companies and Industries we will cover.
1 Introduction Course Introduction Trial by Fire. Barilla Case 1. What are the underlying causes of the difficulties that the JITD program was created to solve?
JITD was created to solve the problems of a) effects of fluctuating demand (Bullwhip. The McDonald's and Burger King cases introduce the analysis of service operations in a well known environment. Please be prepared to address the following points: Draw a process flow diagram for assembling burgers.Download