Statistics and management sciences

Statistics and management sciences Free Online Research Papers Statistics is â€Å"The mathematics of the collection, organization, and interpretation of numerical data, especially the analysis of population characteristics by inference from sampling.† (The American Heritage ® Dictionary) â€Å"The collection, presentation, analysis and interpretation of the numerical data. The facts which are dealt with must be capable of numerical expressions.† â€Å"Statistics is a discipline which is concerned with designing experiments and other data collection, summarizing information to aid understanding, drawing conclusions from data, and estimating the present or predicting the future.† (The University of Melbourne) The word statistics originated from Latin word â€Å"status† meaning â€Å"state†. Earlier it was identified solely with displays of data and charts pertaining to the economic, demographic and political situations prevailing in a country. Even today a major segment of the general public thinks this way. However gigantic advances during the twentieth century have enabled statistics to grow and has made it important as a discipline of database reasoning. WHAT IS MANAGEMENT SCIENCES? Management science (MS) is the discipline of using mathematical modeling and other analytical methods, to help make better business management decisions. A management science is the application of scientific techniques that enable managers to make better decisions. Good decision-making can enhance the efficiency, productivity and profits of business firms. Management Sciences techniques are applied in many business functional areas, including supply chain and logistics management, inventory control, quality control, operations planning, production scheduling, sales forecasting, financial management, enterprise data mining, and customer relationship management. For instance, mathematical models can be used to create dependable flight schedules and crew shifts for airlines. Quantitative techniques can be used in deciding on service centre location, controlling production, or implementing statistical quality control in manufacturing companies. These techniques can also be used by service organizations such as banks, hospitals and investment firms to increase productivity, to provide better services to their customers and to increase prof its. In this era of technological advancement in information technology, management sciences makes extensive uses of information technology to effectively model and solve large and complex management problems. RELATIONSHIP OF STATISTICS AND MANAGEMENT SCIENCES The statistics plays a very crucial role in the field of management science. It is practically in practice in the organizations. The management’s main responsibility is to make logically sound decisions and the base of the decisions is the data that depends on the work and the statistical tools. So the statistical is inevitable for the business. Role of statistics in management sciences is discussed below: 1) HELPS IN MAKING SENSE TO NUMERICAL INFORMATION Every manager operating in business environment requires as much information as possible about the characteristics of that environment. The most important thing is that majority of information required is of numerical nature for example interest rates, stock market prices, money supply, market demand strength, an auditor’s concern about number and size of errors found in account receivable etc. These information in raw form are impossible to comprehend fully. Statistician’s role involves the extraction and synthesis of the important features of a large body of numerical information. One objective is to give sense to numerical data by summarizing in such a way that a clearly understandable picture emerges. At some places simple and straightforward numerical or graphical summary is sufficient whereas at times you need to employ heavy artillery of formal techniques to provide a good basis for deeper analysis. QUALITY AND PRODUCTIVITY IMPROVEMENT The world marketplace has faced immense competition over the past few decades. An international revolution in quality and productivity improvement has heightened pressure on economies. In order to survive the need is to mobilize workforce for continuous commitment to quality improvement. Improvement is possible knowing the current standards of quality provided and surveying what is required. At this stage, statistical skills in the collection and presentation of summaries are required. MONITORING ADVERTISING CLAIMS The public is constantly bombarded with commercials that claim the superiority of one product brand in comparison to others. When such comparisons are founded on sound experimental evidence, they serve to educate the consumers. Not infrequently however, misleading advertising claims are made due to insufficient experimentation, faulty analysis of data, or even blatant manipulation of experimental results. Government agencies and consumer groups must be prepared to verify the comparative quality of products by using adequate data collection procedures and proper methods of statistical analysis. HELPS IN REMOVING UNCERTAINTY Statistics does not deal with question of WHAT IS but of WHAT COULD BE or WHAT PROBABLY IS. At a time when assertions are made its not possible to tell surely of what is going to be the truth. This means that there is element of uncertainty. For example: The price of IBM stock will be higher in six months than it is right now. If the federal budget deficit is high as predicted, interest rates will remain high for rest of the years. Although an analyst may believe that anticipated developments over the next few months are such that price of IBM stock is likely to rise over six months period, he or she will not be certain of this. This means that this possibility exists but to what extent or how much more likely to rise? This is answered with the help of statistical probability tools. SAMPLING Before bringing new product in market, a manufacturer wants to arrive at some assessment of the likely level of demand, and a market research survey may be undertaken. He wants to know about potential population of all buyers. However, it is prohibitively expensive, if not impossible, for a typical market research survey to contact every member of that population. Rather a small sample of population members will be contacted, and any conclusions about the population will be based on information obtained from sample. The technique of sampling large population is largely used in business. For example decisions about whether a production process is operating correctly are based on the quality of a sample from its output. When we have information on a sample from population, it is generally straightforward to summarize the numerical sample data. However taking a sample is merely a means to an end. The objective is not to make statements about the sample but, rather, to draw conclusion about the wider population. Thus an important problem for statisticians involves the extent to which it is possible to generalize about a population, based on results obtained from a sample. RESEARCH ANALYSIS Statistics studies possibility and nature of a relationship between two or more variables of interest. For example, what would be effect of 5% increase in price on demand of automobiles? Economics says other things remaining same an increase in price brings decrease in demand. This theory is qualitative. It does not tell us how much demand will fall. Now we must collect quantitative information in order to assess how demand has responded to price changes in the past. Now we will base our assessment on premise that what happened in past is likely to be repeated after proposed current price increase. Objective of using numerical information is to learn something about the relationship between the variables of interest. Procedures for analyzing relationships are possible only through statistics. FORECASTING Reliable predictions are needed in business. Investment decisions must be made well ahead of time at which a new product can be brought to market, forecasts of likely market conditions some years into the future is desirable. For established products, short term sales forecasts are important in setting of inventory levels and production schedules. In forming economic policy, the government requires forecasts of likely outcomes for variables such as gross domestic product, unemployment, and inflation etc. Forecasts of future values are obtained through the discovery of regularities in past behavior. Thus data are collected on past behavior of the variable to be predicted, and on the behavior of other related variables. The analysis of this information may then suggest likely future trends using statistical tools. DRAWING INFERENCES FROM TOOLS The tools and techniques that compromise business statistics include those specially designed to describe data such as charts, graphs and numerical measures. Also included are inferential tools that help decision makers draw inferences from a set of data. Inferential tools include estimation and hypothesis testing. The inferential tools includes two things the estimation and hypothesis testing. ESTIMATION In situations where one would like to know about all the data in large data sets but it is impractical to work with all the data, decision makers can use techniques to estimate what the larger data set looks like. The estimates are formed by looking closely at a subset of the larger data set. HYPOTHESIS DEVELOPMENT Once the decision maker identified the important variables in a situation and established the relationship among them through logical reasoning in the theoretical framework the decision maker is in a better position to test whether the relationship that have been theorized do in fact hold true. By testing these relationships scientifically through appropriate statistical analysis or through negative case analysis in qualitative research we are able to obtain reliable information on what kind of relationships exist among the variables operating in the problem situation. The results of these tests offer the decision maker some clues as to what could be changed in the situation to solve the problem. Formulating such testable statements is called hypothesis development. INTERPRETATION The results is interpreted in the light of the limitations of the original material. Too exact conclusions must not be drawn from data which themselves are but approximations. It is essential however, that the investigator discovers and clarify all the useful and applicable meaning which is present in its data. FACTOR OF CARELESSNESS ELIMINATED Human beings cannot go through life without making mistakes, but should be reduced to a minimum. Factor of carelessness is eliminated by the use of statistics in business decisions by managers. MANAGING ORGANIZATIONAL FUNCTIONS Companies are organized on basis of functions performed by them and that is why they are referred as functional organizations. Organizations perform three primary functions of finance, marketing and operations. Their secondary functions include maintaining accounting record, human resources management and information systems. Statistics help managers convert data into information which in turn plays a critical role in decision making. CAPITAL BUDGETING Capital budgeting is the process by which a firm generates, analyzes and selects the projects that it will invest in. The most important issue addressed is composition of firm’s product line. Once a product is developed its financial feasibility is a must to be examined. Revenues and costs associated with the project are also important to be known. The probability concept is helpful in dealing with uncertainty surrounding the projected values of future cash flows. SUCCESS OF PROMOTIONAL TOOLS Promotion is final component of marketing mix. A company must communicate with consumers to inform them about the company and its product and make them buy the product. Promotional tools available to achieve these objectives include advertising, public relations, sales promotion and personal selling. Statistical methods can be used to help assess how successful these tools have been in generating sales. LOCATION ANALYSIS AND LOGISTICS A critical decision for any firm is where to locate its production facility, storage center or retail outlet. The circumstances that effect location decision depend on type or facility. A variety of statistical techniques can be employed to help make the decision of choosing appropriate location as per requirements of business. PROJECT MANAGEMENT Project evaluation and review techniques and critical path method are management science procedures that help control and plan large scale projects. Probability distributions such as the normal distribution are applied in this topic. HUMAN RESOURCE MANAGEMENT People related decisions by a firm are dealt in functional area of Human Resource Management. It involves activities such as recruitment, training, performance appraisal, compensation and motivation. The HRM must forecast its needs in terms of number of employees required and their skills. If new staff is required then tests must be conducted to employ them on merit basis. The high scorers must be given priority over low scorers. Statistical tools can be used to assess the validity of these tests. Analysis of test results can also help to reveal deficiencies in the training programs. Periodic performance appraisal is important for making decisions regarding retention, compensation and promotion. Statistical methods can be used to assess the compensation program to determine whether it supports performance objectives. INDEX NUMBERS An index number is a statistical device designed to show changes in a variable or a group of related variables with respect to time or geographical location such as wages, income, prices, exports or imports etc over a period of time. Today it’s the most widely used statistical device. They are the indicators of inflationary or deflationary tendencies. Industrial production rising or falling, sales are higher or lower than the previous period are all disclosed by index number. CONCLUSION From the above mentioned heads, it is concluded that statistics plays a key role in the field of management sciences. Research Papers on Statistics and management sciencesThe Project Managment Office SystemRiordan Manufacturing Production PlanIncorporating Risk and Uncertainty Factor in CapitalInfluences of Socio-Economic Status of Married MalesResearch Process Part OneDefinition of Export QuotasOpen Architechture a white paperAnalysis of Ebay Expanding into AsiaBionic Assembly System: A New Concept of SelfPETSTEL analysis of India

Chinese religions and Essay Example | Topics and Well Written Essays - 500 words

Chinese religions and - Essay Example Secondly, Chinese used the concept of Yin and Yang to explain the way the universe works. That is Yan describes the negative forces of nature while Yang the positive forces. Thirdly, Chinese people stand out for their filial piety and ancestral worship. Every Chinese home has a small shrine or altars to offer sacrifices to old generation and ancestors. Fourthly, divination is common in Chinese religion and they believe that unity of the universe allowed future events to be predicted. For instance, heating of a shell and divining the future through the cracks that occurred. In the eleventh century B.C.E political unrest through rebellion of Chou affected the Chinese religion. Chou rulers suggested existence of one god called Shang Ti who they asserted to be more than an ancestor. A great confusion after this rebellion resulted to three main Chinese religions the Confucians, the Legalists, and the Mohists. Shinto is the oldest native Japanese religion that describes formation of Japan as a land superior to other lands with its shrines commemorating its great heroes. The word Shinto comes from Chinese words Shen and Tao, which mean the way of the gods. Shinto was developed to distinguish native Japanese from other emerging religions form China like Buddhism, Taoism, and Confucianism. In the sixth century C.E, Buddhism introduced by the Chinese and the Koreans made Japanese collect their myths and rituals in the name of kami-no-michi. This created a distinction between the native religions with the foreign. The myths allowed for a limited number of gods, goddesses, spirits, ancestral worship, and forms of animism. Although Chinese religions had a great influence on Japanese religion, Japanese used Shinto to depict their own revelation of the Buddhas and Bodhisattvas. They developed their own Buddhism, distinctive form other Buddhism. Mahayana Buddhism is one of these religions that included a

China and Japan Essay Example | Topics and Well Written Essays - 1250 words

China and Japan - Essay Example It has evolved and changed, during the 20th century. Many ethnic groups have existed in China. The pre-eminent ethnic group is the ‘Han Chinese’. Most social values are derived from Confucianism and Taoism with a combination of conservatism. Reincarnation and rebirth is the connection between real-life and the next-life. Spoken Chinese consisted of a number of Chinese dialects. The ancient written standard was Classical Chinese and it was used for thousands of years, but was mostly reserved for scholars and intellectuals. A large part of Chinese culture is about finding the balance of Yin and Yang in relation to Qi, in order to find harmony. Chinese medicine consists of a number of treatments including Chinese herb logy and acupuncture. Other forms of health improvement include meditation. Japanese culture has evolved from the ‘Jomon’ culture, which combines influences from Asia, Europe and North America. Archaeological research indicates that people were li ving on the islands of Japan as early as the upper paleolithic period. Japanese is written with a combination of three different types of scripts: Chinese characters ‘Kanji’ and two syllabic scripts, ‘Hiragana’ and ‘Katakana’. The Hindu-Arabic numerals are generally used for numbers, but traditional Sino-Japanese numerals are also commonplace. Japanese sculptures mainly settled on the subject of Buddhist images. Wood has traditionally been used as the chief material. The oldest sculpture is a wooden statue of 'Amitabha'. 'Chanoyu' and 'Ikebana' are the traditional rituals. The most popular professional sports are Sumo, Judo, Jujutsu and Kenjutsu. Political view of China and Japan:- The deadlock of the Chinese Civil War has resulted in two political states: the People's Republic of China (PRC), known as China, which controls "China proper" as well as Tibet, Inner Mongolia, Xingjian, Hong Kong, and Macau; and the Republic of China (ROC), known as Taiwan, which controls the island of Taiwan and its surrounding islands. The PRC is governed under the one-party system by the Chinese Communist Party, but the ROC has moved towards democratic government. After the founding of the PRC, both states claimed to be the sole legitimate ruler of all of "China". The ROC had more international support but most international diplomatic recognitions have shifted to the PRC. Both regimes use diplomatic and economic means to compete for recognition in the international arena. Currently, the PRC is recognized by most world organizations such as the World Health Organization and the International Olympic Committee. Today, there are 24 U.N. member states that maintain official diplomat ic relations with the ROC while the majority of the U.N. member states maintain official diplomatic relations with the PRC. Japan is recognized as a liberal democracy with free and fair elections, has operated with a dominant-party system known as the Liberal Democratic Party. It takes place in a framework of a parliamentary- representative- democratic- monarchy, whereby the Prime Minister of Japan is the head of government. Executive power is exercised by the government. Japan is generally considered a constitutional monarchy, based largely upon the British system with strong influences from European continental civil law countries such as Germany and France. The Emperor of Japan is "the symbol of the State and of the unity of the people" and exercises a purely ceremonial role without the possession of sovereignty. The constitution is called "the Pacifist

Andy Stern’s A Country That Works Essay Example for Free

Andy Stern’s A Country That Works Essay The president of the largest, Andy Stern, fast-growing and dynamic union in North America named SEIU or Service Employees International Union has just recently launched his new book and even conducted a nationwide tour just to promote it. The SEIU president’s new book which is entitled â€Å"Getting America Back on Track: A Country that Works passes judgment on the union of laborers or workers which are present or established nowadays because they have not adjusted or conformed to the current political landscape. Furthermore, he disapproves on the labor unions failure to bring the workers together and unite them on a common goal. Andy Stern in his books lays out a plan that he believed would refurbish or repair the current tax system. Furthermore, the plans that he proposed aimed the transformation of the health care system and fix the retirement system. His new book also includes certain strategies or arrangements to improve the current existing education. Andy Stern’s book is basically concern with the decline of the United States trade union movement. Andy Stern is aware that economy is changing and that there is a great mass of working class that requires equality. The economy is changing by shifting the power more towards those in the authorities and less to the working class. Furthermore, there is a decline or decrease in the rate of private sector unionization and reached the lowest level even before the year 1900. In addition to this, as economy changes and the power shifts to an inequality, the role of the labor in the economy is also changing. As the occurrence of mass protests, especially those that come from the immigrant workers in the United States, and the worker or labor strikes and protests conducted in France continues to increase, the losses which the companies or corporations incur also increases. As the labor tends to slow down, the process and company’s working time decreases and productivity is affected. Andy Stern’s new book is actually not directly aimed at the workers. Furthermore, it does not also include the advancement of any serious strategy in combating the present or occurring corporate assaults on the jobs of individuals and most especially to the living standards. On the other hand, the book is able to inform or give a certain warning to the administrators in the corporate world and the ruling elite. It warns them that if the unions who have worked hard and served the corporate world, more especially in America for already a long period of time, is allowed to collapse, there would be serious and dangerous social upheavals. Furthermore, it gives a forewarning that these social upheavals, if it goes outside the control of those in power or of the labor bureaucracy, would greatly increase. The labors which are organized should be in an innovative position as to create new leadership and perspectives. In the old days, manifestations from the labor unions are mainly expressed through strikes and workers tend to stop from working. This is not a good habit for it does not only incur losses to the corporations but also to the workers as well. Being laid-off from work could also be a problem in the old ways, especially if a union continues to ask its members to do strikes or constant protests. The new organized labor should innovate or reinvent itself to create more ideas in creating solutions to the root of the problem. There would be no serious struggle against the present social inequality if the organized labor’s old ways continue to be of practice. It is therefore necessary or required that the labor union would create or establish an independent political and socialists movement that is composed mainly, if not solely, of the working class. On a different perspective, it can be noted that it is impossible not to understand and be familiar with the effect no matter the degree or even if it was immense, of the increasing productions made by the transnational corporations. It is also impossible to recognize what globalized productions could do with regards to the old labor organizations. On the other hand, acknowledging this fact and be able to create ways of moving forward through a progressive answer are poles apart. According to Andy Stern, the country or the United States labor bureaucracy could outsource the strikes conducted by the labor unions or workers. He stated that the country could give the workers who are in strike a certain â€Å"pay strike† especially in low wage countries. Furthermore, he believed that this could be an alternative in calling out its own members on strike, would eventually reduce the number of strikes conducted by the labor unions. If the workers or labor unions are ready in conducting strikes in the United States and the companies or corporations would also be ready in paying them to strike, then there would be an increase in the losses incurred. It would be very much costly as to when a pay was not given to those who would go on strikes. But, paying the laborers in India, Indonesia or other places to conduct strikes and protests against the same global employer would incur less loss and is basically not that expensive. These assumptions are however blunt and has a mark of certain arrogance to it. It should be noted that an international working class movement should have its grounds on a plan or an agenda that ensures mutual solidarity in achieving liberation for all. It is not good to use workers from other countries to serve as pawns in achieving a narrow and constricted national interest. The final chapter of Andy Stern’s book includes his proposals for the reordering of the society. From his proposals, it could be analyzed that here is none that goes beyond the milk toast reforms which are pressed forward by the sections in the Democratic Party. In addition to this, it can also be noted that his proposals have no chance of being adopted or accepted because the big businesses or corporations do not want any infringement on its profits. These measures which Andy Stern stated were supported by another proposal that he made. He proposed to the capitalists and even to their political representatives that these are under their best interest. Though on the other hand, it may somehow state a conscious duplicity or self-deception and cynicism vaguely. In some cases, cynicism somehow dominates. Andy Stern has some dulled statements which support these points of view and somehow admit that the labor bureaucracy’s alliance together with the Democratic party is worthless or hollow. The statement is somehow correct, in the point of view of an individual who understands through politics or capitalist politics. But in the point of view of a political struggle in general, that statement is basically incorrect. Andy Stern, in some parts of his book, is able to write or create reactionary conclusions which are basically based from the right or proper observations. He puts forward or suggests addressing the incapability, generally the failure, of the labor unions’ alliance with the Democratic Party. On a different point of view, it can be said that this only puts the labor unions in forming closer ties with the Republicans. Generally, Andy Stern’s book, from one chapter or part to the other, is really thought-provoking as to what methods or proposals should be really followed.

Peter Pistol Maravich Essay -- Essays Papers

Peter Pistol Maravich Peter Press Maravich is arguably one of the best basketball players ever to play the game. Born June 22, 1947 in Aliquippa, Pennsylvania where he learned to love basketball from his father, Press Maravich, who spent many hours teaching him the game’s most important fundamentals. Maravich broke numerous records throughout his career. While in high school he scored 47 points, more than any other player, in the North Carolina High School All-Star Game. He holds nearly every National Collegiate Athletic Association (NCAA) scoring record at Louisiana State University (LSU) and was named a three-time All American in only three years in the NCAA. After a legendary college career at LSU, he played ten great seasons in the National Basketball Association (NBA), earning five trips to the NBA All-Star Game and one league scoring title. After his death, he was named to the NBA’s Top 50 Greatest Players of All Time and was inducted to the Hall of Fame. I feel, as a player, for anyone to accomplish so much in such a short period of time is remarkable. During Maravich’s career the three-point line was not yet a part of professional basketball, so he accomplished all this without the three point line. Maravich is without question one of the greatest offensive basketball players ever to play the game. Maravich got his nickname â€Å"Pistol Pete† from his father. Once referring to his style of shooting during his childhood and as a high school player, Pistol quickly developed into an offensive machine with great shooting, passing, and dribbling skills. He was said to be an offensive genius. According to Mike Flynn former rival of Pistols’ who played for the University of Kentucky and the Indiana Pacers, Pistol was one of the greatest offensive players I’ve ever seen. I wouldn’t say he was a pure shooter, as much as I would say he was a great scorer. I loved playing against him because he didn’t like playing defense so I knew I was going to get my points, even though he would always score more than me†¦. Pistol was an individual player, he was out there to put on a show and that’s what he did.(Personal Interview) I agree with Mike Flynn, because this quote comes from a player that has played against him, so he knows what type of player Pistol was. Pistol was a great player, even though he was an individual player, because no one ... ...ever lived, and probably one of the most unique. He died on January 5, 1988 at the age of forty while playing in a three-on-three pick-up game in California. The news of his sudden death shocked everyone and brought back memories to his admirers. Few have inspired me as he did. Maravich had a commitment to excellence, even though he did not play much defense. Him being able to average, as many points as he did is unbelievable. Although the one thing that inspired me the most was that he was a born again Christian. Before his death, he told his former coach, Richie Guerin, that his desire was to be remembered as a good Christian, a good husband, and a good father. He spoke before 35,000 people at the Billy Graham Crusade in Columbia, South Carolina just a few months before his death. Maravich stated â€Å"Next week I’ll be inducted into the Hall of Fame†¦. I wouldn’t trade my position in Christ for a thousand NBA championships, for a thousand Hall of Fame rings, or for a hundred billion dollars.† I really admired Peter Press Maravich, I feel his place in the history of the sport of basketball is secure. He will always be remembered as the greatest offensive scorer of all time.

Barilla Spa Case

Barilla SpA Case Table of Contents Executive Summary2 Issues Identification3 Environmental and Root Cause Analysis3 Alternatives or Options4 Recommendation and Implementation5 Monitor and Control6 Conclusion6 Executive Summary Barilla’s high stock out rates along with large average inventory numbers are the main reasons why Maggiali is looking to continue on with Vitali’s dream of implementing the Just In Time Distribution system. However, faced with great external resistance to its introduction, Magialli must look to top management to hop on board and facilitate its acceptance among all partners in the supply chain. Using internal distributors as experiments will allow Barilla to showcase better stock out and inventory results. By doing so, Barilla can gain the acceptance and approval of other distributors. With everyone participating in the JITD, Barilla will be better able to forecast demand and not over react to movements at the consumer level. Issues Identification Giorgio Maggiali, the current director of logistics for Barilla SpA, faces much resistance when he tries to implement a new manufacturing concept called Just-in-Time Distribution (JITD). Initially, this idea was proposed by the prior director, Brando Vitali, but is heavily supported by Maggiali as well. Because of the existing structure in the organization, fluctuations in demand at the end-user/customer level cause the whole system to react adversely. The result is an excess â€Å"safety stock† at all levels of the supply chain, leading to extra costs. This is commonly referred to as the â€Å"bullwhip effect. † Due to the resistance Maggiali faces, he must make a decision on whether or not the JITD is feasible for Barilla SpA and how to implement it with the unsupportive partners in the supply chain. Environmental and Root Cause Analysis The first concept we must understand is how significant pasta is in Italy. â€Å"Per capita pasta consumption in Italy averaged nearly 18 kilos per year, greatly exceeding that of other western European contries. † (pg. 2, Barilla SpA case study) Due to its dominance in the food market, consumers are very aware of price fluctuations and which pastas are â€Å"on sale. † Because of this, forecasting consumer demands is a vital component of the JITD. Without it, the traditional way of order-filling leads to common stock outs and excess inventory throughout the year. Because of the process pasta is made, Barilla cannot simply change its production on a whim. Its production plant must keep the kiln’s humidity and temperature at precise specifications for different types of pasta. As a result, sequential production is optimal to keep downtime and costs low for pasta manufacturing. The JITD was developed to address issues such as stock outs and to make inventory levels more manageable due to better forecasting. It will also allow Barilla to make the production and inventory decisions from a top down perspective rather than bottom to top reactionary chain (bullwhip effect). As shown in the Sales and Stock outs Chart at the Cortese Northease Distribution Centre (Exhibit 13, Barilla SpA Case study), stock outs are a regular occurrence due to the fluctuations in sales throughout the year. The main resistance from Barilla comes from sales and advertising. â€Å"Barilla’s sales strategy relied on the use of trade promotions to push product into the grocery distribution network. (pg. 6, Barilla SpA case study) It is with these sales that enable sales representatives to meet their target goals. If Barilla decides to implement the JITD, the need to push sales for the Distributors would cease to exist. Essentially, Barilla will be replacing sales by deciding how much inventory to stock each distribution centre with. It is quite clear that the sales department fears this system due to job secu rity issues. The external resistance plays a large factor in why Maggiali is unable to introduce the JITD. There are many unconvinced distributors that are unwilling to share their warehouse data. Also, they perceive that Barilla is trying to take power away from them (DC purchasers), and since they do not know too much about the JITD, they have a lack of faith in Barilla’s inventory management. Alternatives or Options Barilla can choose to forgo implementing the JITD and avert any risk in inter-department conflicts. By doing so, they save on any related costs to introduce the system. However, as Barilla expands, so does their manufacturing and distribution. The problem will continue to escalate as more inventory is pushed through the supply chain. Barilla’s other option is to continue pursuing the JITD which can benefit both the manufacturing and distribution process by reducing stock out rates and lowering inventory levels for the DCs. By lowering inventory levels, the DCs will be able to focus on obtaining more retailers so that they can increase the amount of inventory to be stored in the extra warehouse space. Barilla Pro and Con Comparison Table |Pro |Con | |Forgo JITD |Maintain relationships |Previous costs to develop JITD are lost | | |Save initial setup costs |Inventory problem is not fixed | | |Stick with what Barilla knows |Inventory costs continue to rise | |Implement JITD |Better forecasting |Major resistance/lack of cooperation | | |Lower stock outs | | | |Increased inventory space for DCs | | Recommendation and Implementation It is recommended that Maggiali continue pursuing the JITD due to the fact that the inventory management problem will only worsen as the company’s sales increases as well. However, Maggiali must find other ways of implementing the system rather than force distributors to adhere. Firstly, Maggiali must demonstrate that JITD benefits the distributors. Running an experiment of the system at one or more of the distributor’s sites gives other distributors an example to compare to. Once other distributors see what the system can do for them, they may be more willing to participate. A proposed idea would be to run this experiment through an internal distributor. Doing so will prompt less or no resistance and can be monitored closely. Secondly, Maggiali needs to involve top management so that JITD is not just a logistics issue. Having a company wide effort allows all members to participate and as a resuly, less resistance will be observed. Thirdly, since the distributors may think that Maggiali is trying to obtain power over them, Barilla can bring in a third party consultant trusted by both groups to perform an analysis to determine if in fact, the JITD is beneficial for all participants. Monitor and Control In order to determine if the JITD is advantageous over the old system, Barilla will be monitoring stock out rates and average inventory levels hroughout the year. If the results show positive results over previous data, a move should be made to communicate the benefits of the JITD to more distributors. Stock out rates and inventory levels for those distributors should also be collected to increase and confirm the effectiveness of the system. Conclusion By using an internal distributor to as an example, involv ing top level management, and recruiting a third party consultant, Barilla will be able to introduce the JITD system with very little resistance. The top down approach for Barilla’s supply chain will benefit all levels due to increased efficiency in inventory management. As a result, savings will be realized and passed down from manufacturer to consumers. In order to monitor success and build upon it, stock out rates and inventory levels will continue to be observed to determine optimal production and distribution of Barilla’s products. With this system in place, the bull-whip effect that is currently experienced, will be countered by the JITD’s ability to forecast consumer demand.

Exothermic Reaction Definition