3078 WordsSep 25, 201313 Pages
1. Describe Barilla’s manufacturing and distribution operations. Barilla's has 25 manufacturing plants located all throughout Italy where each plant has a dedicated product that they manufacture ranging from pasta, flour mills, fresh bread and specialty products such as croissants and Christmas cakes. Raw materials, in the manufacturing process, were transformed to packaged pasta on fully-automated 120 meter long production lines. Each plant specialized in manufacturing a type of pasta with the main distinction being the composite of the pasta i.e. dry or fresh pasta, or pasta with or without eggs and spinach. Even within the same family of pasta products, individual products were assigned to plants based on the size and shape of the…show more content…
A DO acted as a centralized buying organization for a large number of independent supermarkets. Most DOs had regional operations, and the retailers they served usually sourced product from only a single DO. Both GDs and DOs purchased product from the Barilla CDCs, maintained inventory in their own warehouses, and then filled supermarkets’ orders out of their warehouse inventory. A distributor’s warehouse typically held a two-week supply of Barilla dry products in inventory. Many supermarkets placed orders with distributors daily. The store manager would place an order that would then be transmitted to the store’s distributor; deliveries were typically received at the store 24 to 48 hours after the receipt of the order at the distribution center. 2. What is the problem faced by Barilla? What do you think are the factors causing this problem? The problem faced by Barilla is that they are experiencing the bullwhip effect as a result of the supply chain lacking coordination causing unpredictable demand. Barilla is experiencing fluctuations and variability in demand as a result of each supply chain member focusing primarily on their own local objectives resulting in increased manufacturing, inventory, distribution, transportation and labor costs. There are a number of obstacles Barilla is facing that is leading the demand for their products to fluctuate

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