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| Topic: |
Business
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| Number of pages / Number of words: |
12 / 3120 |
Essay's paper body
The grocery and pasta business in Italy had a long history of using promotions and discount pricing to move products. The central distributors expected frequent trade promotions and stocked up on inventory during the promotional periods to benefit from the favorable pricing. As a result of promotions, the demand for Barilla??s products would swing significantly from week to week and was not stable throughout the year...
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Demand peaked when promotions were offered and dropped significantly when the promotions expired. As a result, higher inventory levels were maintained both by Barilla and the distributors as the distributors purchased sufficient pasta to meet both current and future needs.
An additional cause of the high inventory levels was the manufacturing process...
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