1. Identifications and Controls at Barilla
• Higher overall warehouse and transportation costs • Sales Representatives Incentives based on the amount of the products that they sold to the distributors Issue Identification and Root Cause • Demand fluctuations (Bullwhip effect) As the 1980's progressed, Barilla has been facing huge variability in demand essentially affecting dry products, such extreme demand fluctuation strained the manufacturing and distribution network of the company (see Exhibit 12) • Cost of having to hold high inventory This fluctuation in demand and the difficulty of the manufa...
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