Logistic and Supply Chain Management - OMGT2085
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Royal Melbourne Institute of Technology
Logistic and Supply Chain Management (OMGT2085)
Added on 2020-03-04
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In OMGT2085 - we will discuss various question answers related to Logistics and supply chain management of JITD.
Logistic and Supply Chain Management - OMGT2085
Royal Melbourne Institute of Technology
Logistic and Supply Chain Management (OMGT2085)
Added on 2020-03-04
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Running head: LOGISTIC AND SUPPLY CHAIN MANAGEMENTLogistic and Supply Chain ManagementName of the StudentName of the UniversityAuthor Note
1LOGISTIC AND SUPPLY CHAIN MANAGEMENTTable of ContentsAnswer 1..........................................................................................................................................2a)..................................................................................................................................................2b)..................................................................................................................................................2c)..................................................................................................................................................3d)..................................................................................................................................................4e)..................................................................................................................................................4Answer 2..........................................................................................................................................5Answer 3..........................................................................................................................................5Answer 4..........................................................................................................................................6Answer 5..........................................................................................................................................6a)..................................................................................................................................................6b)..................................................................................................................................................7c)..................................................................................................................................................7d)..................................................................................................................................................7e)..................................................................................................................................................8f)...................................................................................................................................................8Reference List..................................................................................................................................9
2LOGISTIC AND SUPPLY CHAIN MANAGEMENTAnswer 1a)The main aim of creating JITD was for solving the issues that are been stated below:i)Minimising the effect of fluctuating demand also known as Bullwhip effect (Khan,Khan and Sohail 2014)ii)Issues regarding stock-outs which have adverse effect on operations likemanufacturing and logisticsThe benefit associated with this program is that Barilla can establish better decisionsregarding delivery as well as improving their forecasts demand. This will yield in meetingthe requirements of end consumers more effectively. The distribution of workload willbecome more even and therefore the operation of manufacturing and logistics will be smooth.The reduction in inventories to customers can also be achieved.b)The conflict internal to Barilla created by JITD program is on the current promotional aswell as discount policy method. Barilla creates division of each year to 10 to 12 periods ofcanvass and each of them is corresponding to promotional event. Sales executives of Barillareceive incentives on the achieved sales goal of every period of canvass. This helps inwelcoming the distributors for purchasing more products. This also provides encouragement tothe distributors for ordering in less frequency, which increases the order quantity for each time. Implementation of JITD is responsible for decreasing the inventory level of Barilla,which will results in increase of inventory for distributors. Therefore, the distributors will order
3LOGISTIC AND SUPPLY CHAIN MANAGEMENTat a less frequency and huge quantity at a time that will pile up the inventory and will causedemand fluctuations (Mohamed 2014). The solutions that can be recommended by being Giorgio Maggiali are as follows:The discount should be provided for orders, which are of long-term and stable.Discounts for the orders of big volume should be restricted. This will help tosatisfy market demands, as there will be orders, which are reliable and stable. Thiswill also help in reduction of fluctuations. As every representative is carrying laptops, therefore software can be installed intheir systems, which will collect information of distributor’s warehouse. Thedistributor’s work will be saved which will be significant while implementingJITD. c)Being one of the customers of Barilla, the response to implementation of JITD will becomprised of following sensation:Sense of:Burden: Barilla needs to report us about the level of inventory as well as sales amounts for eachday. This will yields in contradiction of review policy, which will impose additional burden onstaff. This will need Barilla for paying the additional costs of staffing. Distrust: It appears, as inventory management by Barilla is better than that of us. Therefore, theshipping amount will be reduced which exhibits that the past predictions made by us is notappropriate. As a counter measures no past, data of sales will be provided us to Barilla and as aresult they may face problem in forecasting market demand.
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