Supply Chain Optimization

The assignment content discusses the case study of Barilla's implementation of Just-In-Time Distribution (JITD) to resolve stock outs issues, which affected manufacturing and logistics operations. The benefits include effective decision making, improved demand forecast, and minimized inventories. However, drawbacks include lost incentives for sales workers and difficulties in managing trade promotions. The content also explores other supply chain management solutions such as e-commerce, express delivery, collaborative forecasts, everyday low pricing, vendor managed inventory, and supply contracts. Finally, it discusses the advantages and disadvantages of implementing these solutions.

Case Study

Problem: 1
a. JITD was mainly developed to resolve the problems of stock outs issue which stains the
manufacturing and logistics operations of Barilla.
The benefits of Barilla includes the effective decision making related to delivery and
improvement in demand forecast in order to meet the needs and demands of consumers.
The workload is distributed on the logistics system and manufacturing and distribution
centres inventories could be minimised. The drawbacks include the loss of incentive by
the sales workers due to the flat seat. The trade promotions are difficult to manage with
JITD.
b. The trade promotion will be difficult, and the bonus of sales workers will be eliminated
after implementation.
I will provide the opportunities for sales and personnel marketing which impacts on the
program and provide the new way for sales and trade promotion.
c. I will accept the program happily because the implementation of the program enables to
smooth out the effect of bullwhip effect and minimize the cost of inventory and
warehouse space.
Problem: 2
a. E-commerce
The stages of a supply chain can be improved through getting new ideas and customer
data which help to take the effective decision so that the optimised chain can be
developed. The advancement in technology alleviates the effect.
b. Express delivery
It reduced the lead time which reduces the variability in supply chain and enhances
the effect.
c. Collaborative Forecasts
It helps in attaining the supply chain's global optimisation which helps to alleviate the
effect.
d. Everyday low pricing
It helps to attract a large number of customers which helps to estimate the demand by the
manufacturer and it reduces the effect across the supply chain (Bozarth et al., 2016).
e. Vendor managed inventory
It helps to reduce the cost by knowing the estimated demand and mitigate the risk which
alleviates the bullwhip effect.
f. Supply contracts
It helps in the long run for achieving the global optimisation which alleviates the effect.
Problem: 3
Advantages:

1. It enables to win the confidence of customer which improve the sales.
2. It develops the situation of win-win for customer and local dealer.
3. It minimises the effect of a bullwhip.
Disadvantages:
1. It minimises the level of service.
2. The risk of customer loss is arises.
3. The lead time will be increased.
Problem: 4
The five ways are explained below:
1. The sharing of information minimise the time of order processing which reduced the lead
time.
2. The cross-docking can be used to reduce the lead time.
3. The involvement of optimal distribution design of network leads to reduce the lead time.
4. Vendor management inventory involvement.
5. Involvement of accurate forecast due to a decrease in the horizon of a forecast
(Christopher et al., 2016).
Problem: 5
The competing objective of the farmer is to maximise the production and sell it to the
manufacturer. The manufacturer does not purchase in a huge amount due to fluctuations in
demand by the distributor. The objective of the distributor is to purchase according to the
demand of retailer. So the main objective is to manage the demand accurately from the retailer to
the manufacturer. The objective of a grocery store is to predict the demand for cereals accurately.

References
Christopher, M. (2016). Logistics & supply chain management. Pearson Higher Ed.
Bozarth, C. B., & Handfield, R. B. (2016). Introduction to operations and supply chain
management. Pearson Higher Ed.