Operations and Supply Chain Management.

Barilla SpA Case Analysis 1. What are underlying drivers of the fluctuations in the distributor’s order pattern we see in Exhibit 12? 2. What does the underlying demand pattern for pasta look like in Italy? 3. What is the impact of the fluctuation seen in exhibit 12? How much does it cost to have an order pattern like this? (What lines would be affected?) 4. Clearly the variation in demand is imposing additional costs on the channel. What do you think of Brando Vitale’s JITD proposal as a mechanism for reducing these costs? 5. Why are Barilla’s customers so resistant to the JITD idea? How might Maggiali be more successful in persuading customers to at least try the JITD program? 6. Why there is so much internal resistance to what seems, in concept, to be an effective idea for Barilla? 7. In general, if one party is to make decisions, who should it be? Why is it Barilla who is making the decision? Why doesn’t Barilla pass information to the distributor and let the distributor make the “system optimal” decision?