Beruflich Dokumente
Kultur Dokumente
Following teams will have to submit reports for the Barilla Case:
Section A: A01-A05
Section B: B01-B05.
Prepare your case report by answering the following questions and submit the same
electronically to in the link created in courseweb before 10 AM on July 5th, 2017.
Name the file according to your Section and Group number. Ex. If you are group 2 in section A,
your file name should be SecAGroup2_Barilla Report.docx
Only one person from each group should submit the groups report, there should not be multiple
submissions for any group.
Questions:
1. What are the reasons for the increase in variability in Barillas supply chain?
Variable order pattern had a direct impact on Barillas operational costs & efficiency:
drastically. Barilla had either inefficient production or excess finished goods inventory.
The production costs rose as product changeover was costly. It also leads to increased
inventory carrying costs.
Utilization of central distribution is inefficient: It was difficult for Barilla to
schedule its resources and facilities like Workers, Machinery and Trucks due to order
variations. This was resulting in increased costs of Labor and maintenance.
products to its distributors in periods of high demand in lesser time than when compared
to periods of low demand. The greater number of trucks required in periods of high
demand increased its Transportation costs.
3. Can the JITD strategy solve the operational problems faced by Barilla?
Distribution and Manufacturing Cost Reduction based on Scheduled: As mentioned before, the
production costs rose as product changeover was costly. The less interruption, the more cost-efficient.
But this is only true for bottleneck machines. This is also true for distribution cost as a better delivery
schedule would bring down distribution costs.
Better Customer Fill Rate both in Barilla and the Distributors: JITD emphases quick response. Since
the inventory data and delivery pattern are controlled by Barilla, their central factory and CDCs are
therefore easier to schedule their production and deliveries to meet the customer demand. For the
distributors, since their flexibility and reaction speed have all been increased due to the lowered
inventory level, they surely could have better customer fill rate and less stock outs rate than before.
The JITD strategy therefore transfers decision-making authority for determining Barilla-
distributor shipments from the distributor to Barilla. Barilla would monitor the flow of its
product through the distributors warehouse rather than simply filling orders specified by the
distributor. Then they can decide what to ship to the distributor and when to ship it. This strategy
enables Barilla to make manufacturing and logistics decisions that benefit the entire system.