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[Group 7]
Q1. Diagnose the underlying causes of difficulties that the JITD program was
designed to solve. What are the benefits and drawbacks of this program?
Answer:
Barilla faced enormous fluctuations in demand, despite pasta being a nonseasonal product with low variation in demand at the customer end. This is a
characteristic problem in supply chains known as Bull-Whip Effect. This has
arisen due to:
i.
ii.
iii.
iv.
Reduced lead time between Barilla & Distributors and Distributors and
retailers.
Decreased overall supply chain costs in terms of logistics & inventory.
Better planning of manufacturing resulting in decreased manufacturing
costs.
Reduced inventory levels at Distributor & retailer level while increasing
service levels.
Reduction in the Bull-whip effect.
iv.
v.
Q2. What conflicts or barriers internal to Barilla does the JITD program create?
What causes these conflicts and how can they be handled?
Answer:
Problems:
i.
ii.
The single biggest threat faced by the JITD program is from the sales
representative, who feel that with the new program their responsibility
and power of managing inventory & trade promotions would diminish.
This may in turn threaten their jobs itself.
Some other concerns raised are sales levels falling and losing the
flexibility to satisfy variable demand & offering trade promotions.
Solutions:
i.
ii.
iii.
Q4. In the environment detailed in the case, is JITD feasible? If yes, which
customers would you target next? How would you convince them that it is worth
trying?
Answer:
Yes, as in the environment detailed in the case JITD is feasible. For this I, would
target customers on two criteria:
i.
ii.
Based on the above two criteria, I would convince at-least one of my customer to
try JITD and see the benefits for himself.
How I would convince:
i.
ii.
iii.
iv.