1 / 21

The Coca-Cola Company

The Coca-Cola Company. Develops products Produces the advertising and programs to support those products, and Sells syrup concentrate to Coca-Cola Enterprises and other bottlers, etc. Coca Cola Enterprises.

rolanda
Download Presentation

The Coca-Cola Company

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Coca-Cola Company • Develops products • Produces the advertising and programs to support those products, and • Sells syrup concentrate to Coca-Cola Enterprises and other bottlers, etc.

  2. Coca Cola Enterprises • Combines the product concentrate with other ingredients to manufacture and package our beverages. • Markets and distributes products to retail customers and consumers.

  3. Coca Cola Enterprises • The largest soft-drink bottler in the world, • The Coca Cola Company owns 42 % of the outstanding common stock of Coca-Cola Enterprises • Net concentrate/syrup sales to Coca-Cola Enterprises were $3.1 billion in 1998 or approximately 16 % of sales. • 3.8 billion unit cases in 1998 • Net operating revenues of $13.4 billion • EBITDA $1.989 billion

  4. Full Service Business • CCE’s vending machine operations • Owns and operates approximately 200,000 vending machines in the US • North Metro Atlanta Sales Center • approximately 2,000 machines • approximately 8 drivers • area covering 190 sq. miles

  5. Vending Machines • Support 4 to 12 flavors • Hold 8 to 12 columns of cans • 30 cans per column

  6. Our Example • 5 Flavors • 10 columns • Customer service -- in-stock probability for all flavors 99%

  7. Issues • Which flavors do we stock? • How many columns do we stock for each flavor? • How often to we restock the machine? • How do we build driver routes? • How many drivers and trucks do we need?

  8. Other related questions • Can we make some of these problems go away? • Vending machine design • Size • Flexibility • Number of flavors • …

  9. Current Operations • Machine put on 7, 14, 21, … day schedule based on volume • Drivers assigned routes to cover machines • Missed machines rolled over to next day • Driver allocates columns to flavors and fills • Drive pay partly based on cases loaded • Company prescribes some flavors • Core flavors and new flavors

  10. Which flavors do we stock? • What are the drivers? • Revenue

  11. Our set up • Flavors we must carry • Coke • Diet Coke • Sprite • Other flavors we’ll consider • Caffeine free diet coke • Minute Maid • Nestea

  12. What data do we need?

  13. Maximize Revenue • What flavors?

  14. A better model? • Customer profiles • Diet anything • Any variety of Coke • “Healthy” • Fraction of all customers fitting profile • Choose flavors that satisfy the greatest fraction of the population

  15. Example

  16. An Optimization Model

  17. How many columns? • We have chosen flavors • We know expected sales rates (possibly based on what else is in the machine) • We stock so that...

  18. The Bottleneck • First run out of some flavor as late as possible

  19. How often to restock? • What are the issues?

  20. Service Level Poisson CDF: Probability of at most Stock Level arrivals in Restock Interval days

  21. Service Level vs Interval

More Related