Critique of the Barilla case (see Case Study) Barilla, the Italian pasta produce

Question

Critique of the Barilla case (see Case Study) Barilla, the Italian pasta producer in the case experiences the same effect that you experienced during the beer game. Discuss the case, refer to the case study and additional sources you research regarding the bullwhip effect.

Discussion

Question: 1. What problems does the Bullwhip effect cause for Barilla as a producer (factory)?

2. What contributes to the effect in the Barilla example? List and explain reasons

3. In the environment in which Barilla operated in 1990, do you believe ‘Just in Time’ would be feasible? Effective?

4. How can supply chain management and information systems help to reduce the effect?

5. Would you recommend using an ERP system for Barilla and its suppliers? What system(s) would you recommend and why? What would be the challenges and barriers to implementing the suggested approach/system(s)?

Case Study Link: http://www.filedropper.com/barillacasestudy

Explanation / Answer

1. Bullwhip effect that is created by uneven demnd has greater impact down the supply chain at the production facility where the production systmes can not be matched efficiently to the highly fluctuating demand of different products. As a result, the production of a high in demand commodity can't be scaled up too soon to match the requirement and suddenly lowered if the demand abruptly falls.

2. Main cause of the bullwhip effect is the uncertain demand of pasta and related commodities that shows heavy and unpredictable fluctuations.

3. JIT was infeasible during 1990s because that would have put Barilla in the position of power with respect of distributors who could not have liberty to order as per their will according to demand, but be on the terms of the company and the inventory that they hold, will be managed by them and the risk of uncertainty will be wih them. No distributors would ever want to have that position.

4. Technological tools would have helped to analyse the demand - supply scenario more precisely and enabled to create agile and responsive suply chain that would have reduced the effect.

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