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Barilla Case Discussion
1. Why is Vitali concerned about Barilla's approach to order fulfillment?
There are several concerns with the order fulfillment at Barilla. Both the manufacturers and the retailers are suffering from thinning margins and are in need of a system to reduce costs. The current system leaves Barilla with impossible means of anticipating demand swings as well as massive amounts of inventory being "held" at the retailer. Stock-outs are an additional concern in the order fulfillment process. In order to reduce cost and improve service levels, supply chain strategies must take into account the interactions at various levels.
2. What is the approach Vitali suggests for overcoming distribution inefficiencies?
Vitali's suggestion is to collect data from each distributor daily and use the data collected to make replenishment decisions based on forecasts. In order to do so, improvements should be made to Barilla'a forecasting systems in addition to developing a set of decision rules for making decisions based on the forecasting system.
3. Describe the JITD approach.
The JITD (just-in-time distribution) approach ships products as needed, rather than maintaining inventory. The objective is to be efficient and cost-effective across the entire
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