Inventory Management and Supply Chain of Pepsi Cola International Limited

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B203A

Finance
Part –A
(workings in excel)
Recommendations:
This means that those items which belong to Category A are the highest valued items in the
inventory. These are the most expensive stocks and must be handled with utmost care and
importance. Further, as these A category items are the major source of company’s revenue
earnings, the company must ensure that these are in stock as and when required.
The B category stocks are highly consumed but are of lower values. Hence these stocks do
not require much safety. But as they are more in demand hence the company should increase
the inventory of such goods.
The C category stocks have high consumption in a number of units but comprise of least
valued products. The use of such stocks may be delegated to any level of employees. There is
not much need to accumulate large piles of such stocks as they may be easily available in the
market (Deegan, 2011).
Part B
Answer-2
Let us take an example of a soft drink company, say Pepsi Cola International Limited.
Company overview, product overview & major competitors
The company deals in manufacturing and retail trading of aerated soft drinks all over the
world. The products sold by the company are used by wide range of customers. It offers
various products under the names Pepsi Cola, Diet Pepsi, Pepsi Max, Pepsi Twist, and 7UP.
The major competitors of the company are other soft drinks manufacturer such as Coca-Cola
Company. As the product of our company is widely used by customers all over the world, its
competitors keep a close watch on all the new product launches and innovations in existing
products and as a result, try to modify their products too. Hence the company faces tough
competitions (Brigham & Daves, 2012).
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