As per our discussion, I have compiled the list of people to be part of the advisory committee responsible for the new IS system to be implemented at Spa Works. These people will be the link between business and development needs of the new system. This project is being undertaken to streamline Spa Works reporting structure for better internal and external reporting and also to provide a competitive advantage by leveraging our business strategy to offer better and quality products and service to our customers. This new system will reduce the time and offer better quality financial reports, human resource reporting and will give Spa Works the ability to continually meet and support custom programs for customers.…
By implementing the JITD concept to our distributors, Barilla will be able to reduce the inventory levels significantly and reduce the percentage of stock outs to the retailers by holding inventory in the products that they will…
3) There is only one type of copper, so the density should be one specific density. However, there are multiple grades of steel, so the value of the density can vary.…
The Kroger company, a leading grocery store in the United States, has difficulties when it comes to the supply of seafood mostly due to the fact that it is hard to predict the supply or demand pattern (Kaufman, 2002). At times there is a significant number of products on the shelves that are in excess whereas sometimes there is too little to meet the customer wants. So as to remedy this situation and ensure that there is nearly the exact amount required at all times the cause of these variations are explored.…
With the Just-in-Time Distribution (JITD) that was brought in from the logistics manager, neither internally nor externally is supporting the new system. With the lack of understanding of the new system and the positive results it will bring, it will be hard to convince buy-ins from different angles. The initiative should be tested first from Barilla’s own facilities and prove out the methods and be able to visualize the improvements to the rest of its supply chain.…
The Italian Pasta Manufacturer, Barilla SpA, is experiencing inefficiencies and increases in cost due to variability in demand from its distributors. Giorgio Magialli, the Director of Logistics, wants to implement a Just-In-Time Distribution (JITD) system to gain more control. The JITD system was originally proposed by Barilla's former Director of Logistics, Brando Vitali. The new system is untraditional and is being rejected by both distributors and Barilla's internal departments.…
My decision is to implement the Just-in-Time Delivery system. JITD will resolve the increasing operational inefficiencies and cost penalties that have resulted from large week-to-week variations in Barilla’s distributors order patterns. In order to reduce the Bullwhip effect being experienced by Barilla, their supply chain would have to be Centralized. This solution allows Barilla to see end customer demand and eliminate costs involved with inventory, manufacturing, and transportation. JITD would allow Barilla to work directly with its distributors and create a flexible manufacturing process. By following the suggestions made in the plan of action, Barilla will succeed in influencing its distributors and Sales personnel to work together and implement the JITD program, which will produce better performance in terms of time and money but will also promote trust and good relations among all the associates in the supply chain.…
Although Alliance Supermarkets utilizes a point-of-sale system to track its inventory levels and keep constant records for each location’s on-hand quantities, the firm still experiences several problems with regards to effective and efficient inventory management. As stated in the case study, “sudden changes in demand for a particular item can catch the company by surprise as it bases inventory replenishment on historical demand patterns. Further, demand patterns and preferences may vary from one store to another depending on the customers served by each, but the inventory system groups all demand information together and treats each store equally. Finally, the manufacturers that make the products stocked by Alliance Supermarkets are always pressuring Alliance to help them target appropriate customers for special promotions and sales.”…
Inventory is the stock of items used to support production, supporting activities and customer service. It is the “bread and butter” that keeps manufacturing firms in business, and is a critical resource in the supply chain. Inventory can be manually managed so that different business conditions can have less of a negative impact on the operations, and give support to the efficient running of supply chains. There are also many tools that companies use to manage production, such as the master scheduling, the material requirements planning (MRP), job sequencing, and distribution requirements planning (DRP). Now with all that said, let us now begin the review and analyze the first case study about the Realco Breadmaster Company.…
What historical factors affect Ford’s ability to move to a built to order (BTO) model?…
In the heart of the city, Thermae Bath Spa is a remarkable combination of ‘old and new’ where historic spa buildings blend with the contemporary design of the New Royal Bath.…
The supply chain of pasta and pasta-related products in Italy was facing significant problems, including excessive inventory levels, high levels of stock-outs, extreme reliance on promotional activities, inefficient logistics operations and poor communication and cooperation between the supply chain participants. The industry had not leveraged technology to improve communication amongst its members, tracking of inventory or demand forecasting. These problems resulted in higher inventory carrying costs, as supply chain members sought to reduce the frequency and magnitude of stock-outs. Furthermore, industry suppliers competed fiercely on price, resulting in extreme peaks in demand during promotional periods.…
– Rather than simply filling orders specified by the distributor, Barilla would monitor the flow of its product through the distributor’s warehouse, and then decide what to ship to the distributor and when to ship it.…
Things that can affect the purchasing cycle are: weather because the delivery may not be able to be made due to large amounts of snow or rain. This means that the caterers needing the food can’t receive the goods and so a discount is usually given by the suppliers, which means less money to be made by the suppliers. Another thing is errors on the suppliers behalf because if one product is misread then that means that the business receiving the goods will not be able to cook the food they wanted to with that item. This would result in loss of clients or another delivery to be made; which means money loss.…
There is a large variability in demand. (GD’s and DO’s order once a week, in varying quantities, causing a bullwhip effect). This is strange, as the total market is relatively flat and nearly completely saturated. Because pasta is so common in Italy, people usually stick with their choice of brand, which is why demand should be stable for Barilla’s products. Therefore, the problem must be with distributors and/or retailers, not with actual demand of end-customers.…