In regards of supportive activities that included procurement, HR management, technology department and infrastructure. Although, the case did not specifically mention about procurement and technological issues, as one of the top firms in Italy, Barilla SPA attracts potential resources all over Italy. Additionally Barilla also acquired world-class manufacturing system equipped with cutting-edge facilities to support the Barilla’s high demand.
3. Problem Identification
Barilla faces several issues back in the late 1980s. Bullwhip effect on its supply chain is one of the biggest challenges for Barilla has to deal with during that period of time. Bullwhip effect defines as the trend of larger and larger swings of order quantity in response of changes in demand (Lee, 1997). Understanding the cause of bullwhip effect can be the basis to come with the solutions.
First the reason why Barilla experience bullwhip effect on its supply chain system is because Barilla does not have the standard sales forecasting model during the time. With the lack of standard forecasting model, Barilla experienced the overburdened logistic and