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The proposed JITD system requires the distributors to share their sales data with Barilla, who would then forecast and deliver appropriate amounts of products to the distributors at the right time in order to effectively meet demand. The system is received with resisitance from unconvinced and leery distributors as well as internally with the sales reps who fear, among other things, reduction in responsibilities.
In this case, a successful decision would result in the reduction of the Bullwhip effect, which Barilla is experiencing. It would also reduce the variable demand that is causing inefficiencies and increasing costs...
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