1. Identifications and Controls at Barilla
... order to meet distributor's order • Transportation cost • Barilla's sales strategy relied heavily on the use of promotions • Long Lead time • Customer service. • 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 ... lead to overtime shifts in order to meet the demand, higher inventory of raw materials and frequent capacity adjustments, as well as higher transportation costs which all increase the overa...
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