Barilla SpA

Using ABC also allows the company to use the Just in Time (JIT) system. This system allows ensures materials are purchased just in time to produce the products, and products are completed just in time for delivery. JIT uses the demand-pull system to receive the order, schedule production, delivered materials, and finished product delivered to the customer. This lessens the amount of excess parts and inventory saving the company money as well.

Different retailing businesses have very different distribution methods based on the types of product that they sell, some arguably more effectively than others.

The inventory of Kudler’s distribution plan will be entered into manufacturing requirements for estimating input flows and production schedules. As a retailer, Kudler will also link producers to other distributors, buyers, or wholesalers; creating great business relations. These relationships are all crucial with the flow of how their consumers will

Compensating the organizations sales staff through the use properly designed performance pay will lead to profitable sales for the organization. Once again linking compensation to performance will benefit the organization in its ability to pay. It is important to design the compensation of the sales staff in a manner that encompasses all of the organizations goals as communicating with production staff will be a key component of the High Involvement Strategy, and it is important for the organization to demonstrate a commitment to the sales team that the relationship is not just purely financial. Therefore direct compensation for them should consist of a minimum base salary upon which their commissions are added.

Lastly, the just-in-time (JIT) approach is an operating philosophy that requires that all resources, including materials, personnel, and facilities, be acquired and used only as needed (Mazumder, 2007). The JIT approach works great for manufacturing companies because of their common classes of material that they use which are raw materials, work-in-process, and finished goods (Mazumber, 2007). According to JIT concept raw materials are received just in time to go into production, manufactured parts are completed just in time to be assembled into products, and products are completed just in time to be shipped to customers (Mazumber, 2007). The

Just-in-time: Just-in-time is an approach of continuous and forced problem solving through a focus on throughput and reduced inventory. Nissan takes advantage of JIT through reduced inventory levels and relying on a supply chain to deliver the parts needed to build its cars. The major benefit to JIT is that production runs remain short and the costs are reduced through less waste in warehouse storage space requirements. The company also saves money on raw materials

The JIT approach to manufacturing involves timing the delivery of resources so that they arrive just when needed. Inventory optimization models help the firm determine how many of which items in which sizes should be delivered to each specific store during twice-weekly shipments, ensuring that each store is stocked with just what it needs. Trucks serve destinations that can be reached

Littlefield Technologies (LT) has developed another DSS product. The new product is manufactured using the same process as the product in the assignment “Capacity Management at Littlefield Technologies” — neither the process sequence nor the process time distributions at each tool have changed. The LT factory began production by investing most of its cash into capacity and inventory. Specifically, on day 0, the factory began operations with three stuffers, two testers, and one tuner, and a raw materials inventory of 9600 kits. This left the factory with zero cash on hand. Customer demand

It appeared that what I was doing in those departments was reflected in the success of my market share. Instead, I paid to have my capacity increased from 25 to 100 per day due to my lost sales in the previous quarter. At the end of the fourth quarter I still held a majority of the market share; considering I turned away 9,064 consumers and only sold 1,625 products – this was impressive. The biggest mistake I made, due to anticipating my capacity would increase immediately, was hiring additional sales staff. By the end of the fourth quarter, my net income and cash flow statements had plummeted. I wish I would have taken more time in the third and fourth quarters to really evaluate my decisions and ensure they were effective.

As argued by Lubben (1988), JIT allows businesses to have better management since this ensures that there is no loss as there is sufficient number of clients requiring the equipment. This reduces her to deal with huge deliveries when the clients’ numbers are not increasing. (Lubben, 1988, p.4) also suggested the idea of JIT that “... major elements of manufacturing – capital, equipment and labour are made available only in the amount required and at the time required to do the job.” So it is a good practice by utilising JIT approach as it reduces wastes and ensure the correct amount of equipment is available (Lubben,

A third disadvantage of applying JIC manufacturing operations is having lower quality assurance methods and even further, lower customer satisfaction (“Just-in-case and just-in-time…”). While the just-in-case system is beneficial in

With JITD, the number of urgent order will be decrease. Barilla can put more focus on managing the standard order with the normal manufacturing setup. Extra work on rearranging the production line will not be required frequently. The whole operation can be more efficient and standardize.

Even though direct competition has decreased, the tendency of retailers to get their products directly from manufacturers puts the company in a position of relooking its competitive edge as a distributor. The marketplace is shifting from an individuality to supply chain performance – the ability to meet end-customers needs through product availability and responsive and on-time delivery. Supply chain performance crosses both functional lines and company boundaries. Brunswick must change their way to fill customer orders faster and more efficiently than the competition.

While the JITD program has many beneficial it also has its drawbacks. One of them is the perception that the power will be transferred to Barilla, as one of the distributors was quoted “we would be giving Barilla the power to push product into our warehouses just so Barilla can reduce its costs.” Another drawback is that some of the distributors are not comfortable or willing to share their warehouse data, which is a vital piece in order for JITD program to work. Furthermore, it might be hard for some retailers to report daily sales simply because they might not have the point-of-sale technology at their stores.

Define the Problem: Describe the type of case and what problem(s) or issue(s) should be the focus for