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Supply Chain and Inventory Strategy

Putting together a syllabus for my course starting in January.

Cases: Produce a two-to three page analysis, synthesis, and evaluation of each case based on questions. The cases will be "typed", double spaced.

Case is "Barilla Spa Case"
1. What are the reasons for the increase in variability in Barilla's supply chain?
2. How can Barilla cope with the increase in variability?
3. What is the impact of transferring demand information across the supply chain?
4. Can the Vendor Managed Inventory strategy solve the operational problems faced by Barilla?
5 .How can the supply chain meet conflicting goals of different partners and facilities?

Solution Preview

1. What are the reasons for the increase in variability in Barilla's supply chain?

The reasons for the increase in variability in the Barilla's supply chain are related to the demand for the products of Barilla. The demand is such that ordering takes place in an unpredictable manner. Suddenly there are large orders followed by long periods of small orders. There are week to week variations in the distributor's orders. When there is sudden demand for a product that product is often not available in stock.

One reason for increase in variability in Barilla's supply chain is that promotions lead to sudden increase in demand followed by periods of low orders. Similarly, there is an increase in demand for the pasta made by Barilla's when there are volume discounts. Further, the tendency of Barilla to create and sell a large number of variations of the product leads to further variability in the supply chain. The distributors had no restrictions on the quantity they could buy. This would lead to higher variability in Barilla's supply chain.

2. How can Barilla cope with the increase in variability?

Barilla can cope with the increase in variability by getting point of sales information. Further, Barilla can set up a centralized demand information department that can obtain and provide demand related information. Barilla should reduce its promotions and volume discounts. If Barilla can reduce the time it takes to receive demand information and can reduce the time it takes to service its orders, it ...

Solution Summary

Supply chain and inventory strategy is discussed very comprehensively in this explanation.

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