Supply Chain

1

INSE 6290– Quality in Supply Chain Design

Summer 2016, Instructor: Dr. Chun Wang

Required Readings

1) Lecture notes: Value of Information (can be found in Moodle)

2) Lecture notes: Supply Chain Contracts (can be found in Moodle)

Assignment 2

Due on July 18th, 2016 at 23h55, submitted through Moodle.

Question 1 (Value of Information): Read the attached Barilla case study and answer the following

questions

a. What are the reasons for increase in the variability in Barilla’s supply chain?

b. How can the firm cope with increase in the variability?

c. What is the impact of transferring demand information across the supply chain?

d. Can the VMI strategy solve the operational problems faced by Barilla?

e. How can the supply chain meet confliction goals of different partners and facilities?

Question 2 (Supply Chain Contracts): Read the attached American Tool Works case study and answer

the following questions in the context of risk sharing and supply chain contracts (i.e. What types of

supply chain contracts ATW should use?)

a. What can ATW do to increase inventory at small and midsize dealers?

b. What can ATW do to increase sales at small and midsize dealers?

c. Why are ATW's competitors using the two approaches described in the case when they

deal with small and midsize dealers?

d. Should ATW adopt these approaches?

e. Should ATW try different approaches? What are the possible approaches they should

consider?

CHAPTER 5

The Value of I fo

Barilla SpA (A)

Giorgio Maggiali was becoming increasingly frustrated.

As director of logistics for the world's largest

pasta producer, Barilla SpA (Societa per Aziont

translates as "Society for Stockholders" and is interpreted

as "Inc."), Maggiali was acutely aware of the

growing burden that demand fluctuations imposed on

the company's manufacturing and distribution system.

Since his appointment in 1988 as Director of

Logistics, he had been trying to make headway on an

innovative idea...