... distributors but also Barilla's own Sales and Marketing department for an array of reasons. Main reasons for fluctuating demand: Promotions: The use of promotions in the form of price, transportation, and volume discounts was the main strategy to sell more products to the distriutors. Sales Reps: The compensation system in place at Barilla for Sales reps, made them to push more products into the pipeline during promotional periods and not able to sell sufficient quantities during non promotional periods created wide variation in demand patterns. SKU's: The huge range of SkU's in each product line led to greater complexity Gaming bevavior and wrong forecasting practices: The distributors were having full control of their orders to Barilla and used gaming during stock outs periods. The distributors did not use any sophisticated forecasting models or systems to calculate the order quantities without any threshold minimum order quantities but rather just followed a replenishment ordering. Long ...

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