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As director of logistics, Giorgio Maggiali was acutely aware of the growing burden from demand fluctuations. He was contemplating the implementation of a Just-in-Time Distribution (JITD) program, which would shift the responsibility of determining shipment quantities from the distributors to Barilla.
Inventory can be blamed for many of the causes of demand fluctuation. The supermarkets and distributors tended to not have much space to hold inventory. This left the door open to events like stock outs where the distributor would run out of the product. Depending on a distributor's inventory level, the orders back to Barilla would wildly vary...
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