GSCM 206 Managing Inventory at Frito-Lay

$14.50

GSCM 206 Managing Inventory at Frito-Lay
Frito-Lay has flourished since its origin—the 1931 purchase of a small San Antonio…

 

SKU: GSCM 206 Managing Inventory at Frito-Lay Categories: , Tags: , , ,

Description

GSCM 206 Managing Inventory at Frito-Lay

GSCM 206 Managing Inventory at Frito-Lay

A+ Case Study

Frito-Lay has flourished since its origin—the 1931 purchase of a small San Antonio firm for $100 that included a recipe, 19 retail accounts, and a hand-operated potato ricer. The multi-billion-dollar company, headquartered in Dallas, now has 41 products—15 with sales of over $100 million per year and 7 at over $1 billion in sales. Production takes place in 36 product-focused plants in the U.S. and Canada, with 48,000 employees.

Inventory is a major investment and an expensive asset in most firms. Holding costs often exceed 25% of product value, but in Frito-Lay’s prepared food industry, holding cost can be much higher because the raw materials are perishable. In the food industry, inventory spoils. So poor inventory management is not only expensive but can also yield an unsatisfactory product that in the extreme can also ruin market acceptance…..

Preview:

As noted in the case, Frito-Lay products are manufactured from its 36 product-focused plants in the U.S. and Canada.  Output of such plant with continuous production and little flexibility on product customization…