Table of Contents
Does Barilla use JITD?
The JITD program is designed to help Barilla be more efficient in executing its operations and better serve its customers. JITD would be an efficient forecasting tool to predict the real demand of the end-consumer. Distributors would not stock their inventory with Barilla products that exceed the real demand.
What is JITD?
Acronym. Definition. JITD. Just-in-Time Distribution.
What are the underlying causes of the difficulties that the JITD program was created to solve?
One of the underlying causes of the difficulties that the JITD program was created to solve was the effects of inconsistent demand that came from Barilla’s distributors. The extreme demand variation strained Barillas manufacturing and logistics, and made very hard for Barilla to meet that demand.
What is just in time distribution?
What Is Just-in-Time (JIT) in Inventory Management? JIT is a form of inventory management that requires working closely with suppliers so that raw materials arrive as production is scheduled to begin, but no sooner. The goal is to have the minimum amount of inventory on hand to meet demand.
What is bullwhip effect and its causes?
The bullwhip effect is a supply chain phenomenon describing how small fluctuations in demand at the retail level can cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer and raw material supplier levels. The effect is named after the physics involved in cracking a whip.
What are the advantages and disadvantages of using the JIT system?
Pros and Cons of JIT Inventory Management
| Pros | Cons |
|---|---|
| Improved Efficiency | Unexpected Price Changes |
| Higher Inventory Turnover Ratios | Challenges Brought By Sudden Change |
| Minimal Inventory Obsolescence | Order Issues |
| Smaller Delivery Quantities | Local Sourcing Costs |
What are the advantages and disadvantages of JIT systems?
Just-in-time advantages and disadvantages preventing over-production. minimising waiting times and transport costs. saving resources by streamlining your production systems. reducing the capital you have tied up in stock.
What is bullwhip effect in simple words?
The bullwhip effect (also known as the Forrester effect) is defined as the demand distortion that travels upstream in the supply chain from the retailer through to the wholesaler and manufacturer due to the variance of orders which may be larger than that of sales.
What is bullwhip effect with example?
The bullwhip effect often occurs when retailers become highly reactive to demand, and in turn, amplify expectations around it, which causes a domino effect along the supply chain. Suppose, for example, a retailer typically keeps 100 six-packs of one soda brand in stock.
Which is the best jitd approach for Barilla SpA?
By using the just in time distribution approach, the lead time issue can be removed because currently Barilla SpA is taking around 8-14 days in fulfilling the order, which is relatively high for such category of products. This JITD approach will help Barilla SpA in predicting the real demand, which will automatically align many issues.
What is the new distribution system for Barilla?
The proposed new system, Just-In-Time Distribution (JITD), is the solution suggested to resolve the demand fluctuation issues and lower costs. This new process would move forecasting and shipment allocation responsibilities to Barilla rather than allowing each distributor/retailer place the order amounts separately.
Why is demand fluctuating in Barilla SpA case study?
This fluctuation in demand, are forcing the CDCs to maintain a higher level of inventory. The proposed new system, Just-In-Time Distribution (JITD), is the solution suggested to resolve the demand fluctuation issues and lower costs.
Which is the best case study for Barilla?
Collaborative Planning: Barilla and the distributors can work as a team and plan on different issues. Manage the demand: Barilla should not only forecast demand but also should try to shape and influence it by marketing using surveys to determine the needs and expectations of the consumers and designing products to satisfy them.