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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1485 |
Essay's paper body
The fluctuations in demand have several negative impacts to the pasta business. Neither the distributors nor Barilla had the ability to precisely predict future demand. For Barilla and its distributors, holding inventory is a costly. Without proper demand information the distributors did not know how much stock to hold and Barilla did not know how much pasta should be produced...
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The climax of the inventory trouble is when a stock out occurs because it is felt on both ends. A second impact of incorrectly predicted demand relates to the manufacturing limitations of the pasta. Each type of pasta had different temperature and humidity requirements. The lack of demand information coupled with the different specifications left it difficult to respond quickly to changes in demand...
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