Barilla SPA

Barilla SPA

As can be learned from the case study, the standard deviation for dry pasta is nearly as high as the mean and because of this, Barilla experienced lumpy demand that fluctuates and this is contributed by the volume of discount offered by the company, long wait times, and lack of minimum or maximum order requirement per order. However, the manufacturing plant does not change with the changes in demand since the plant’s customers were simply unwilling to give up their authority to make orders as they are pleased. Barilla SPA.

In this case, the authority of the customers to place order as they are pleased was not strong since some of them were reluctant to offer the detailed sales data upon which the company could make delivery decisions to enhance demand forecasts.

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Barilla SPA.

Discount on full truck load (between 2 and 3percent) motivated distributors to purchase more than they needed which lead to the next order being significantly lower and fluctuations in order quantities. Additionally, the variation in demand causes Bullwhip effect in the entire supply chain. All these factors can be indicated as underlying drivers seen in the case study. Barilla SPA.