Global Supply Chain Management Report

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Added on  2019/09/20

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This report examines the application of linear programming to optimize Coca-Cola's global supply chain. It focuses on minimizing transportation costs in two key areas: global procurement and the establishment of new facilities. The linear programming model helps select optimal procurement markets based on cost and time, improving efficiency and profitability. In setting up new facilities, the model considers factors like market proximity and raw material availability to minimize transportation costs and maximize sales. The report concludes that linear programming provides a systematic approach to cost reduction and profit enhancement in Coca-Cola's global supply chain operations.
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Global Supply Chain Management
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Introduction
In this present paper, we will discuss the implementation of linear programming scientific model
in order to minimize the transportation issue in the Coca-Cola Company, and it is settled by the
administration researcher programming in order to produce an ideal arrangement. The global
supply chain management analysis of Coca-Cola Company shows that there are transportation
issues which act as a barrier to achieving the goals and objectives of the company.
Global procurement
The linear programming scientific model helps to minimize the transportation issue and costs by
considering the two variables namely, time and costs in order to determine the best alternative
method among the set of options (Vanderbei et al., 2015). In the global procurement strategy, the
linear programming scientific model can be used to select the procurement market in order to
determine the cost benefit to the company. For example, there are three markets from which the
company procures goods and services so by implementing the linear programming procurement
model; the best option is selected by the company by considering the time and costs of
procuring the good and services from the suppliers. The company is currently facing various
challenges in the transportation due to the absence of standard procurement procedure. So the
implementation of linear programming model helps to resolve the problem of transportation
issues which enables to improve the global procurement strategy in the efficient and effective
manner. The global supply chain of the company is facing the transportation issue which impacts
on the overall profit margin of the company because of excessive cost (Monczka et al., 2015).
The linear programming model helps to resolve the transportation issues by providing the
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standard procedure for resolving the transportation issue. It is further settled by the
administrative research programming in order to produce an ideal arrangement. Further research
programming helps the company to determine the new and skills in order to develop innovative
global supply chain strategy of the company. The transportation model can be implemented by
the company in order to maximize the sales volume of the company and minimize the cost of the
global procurement by determining the minimum transport costs from the particular supplier.
Setting up & running new facilities
The setting of new facilities considered various factors such as distance from the market,
availability of raw material and others. The implementation of linear programming procurement
model helps the company to select the best place for setting up new facilities. The linear
programming helps to determine the place which is near to the market in order to minimize the
transportation costs which enables to maximize the profitability of the company within the
particular period of time. The setting of new facilities means expansion of business which aims
to increase the profit margin of the company. The implementation of linear programming
scientific model helps to eliminate the transportation issue which enables to maximize the
profitability of the company, and it directly enables to achieve the goals and objectives of the
company within the particular period of time (Sarkis et al., 2016). The setting up of new facilities
requires research and development in order to determine the viability of the project. The
implementation of linear programming model helps to achieve the best outcome by minimizing
the transportation costs, and it maximizes the sales volume of the company. For example, the
implementation of linear programming helps the company to compare the various locations in
order to determine the competitive advantage which enables to stand out among the competitors
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within the same industry. The implementation of the linear programming model is helping to
maximize the sales volume of the company by minimizing the total costs of the company which
is the ultimate aim of the company (Guo et al., 2015).
Conclusion
It can be concluded that the implementation of linear programming scientific model helps to
determine the minimum costs of procuring the material globally which enables to minimize the
costs and maximize the profitability of the company in a systematic manner. The transportation
model can also be implementing in setting up facilities in order to determine the competitive
advantage of selecting the particular place. There are two main factors which are considered at
the time of setting new facilities, namely, the distance of market and availability of raw material.
The transportation model helps to select the place through determining the distance of market
and supply of material from the new set up.
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References
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and
supply chain management. Cengage Learning.
Vanderbei, R. J. (2015). Linear programming. Springer.
Guo, H., Wang, X., & Zhou, S. (2015). A transportation problem with uncertain costs and
random supplies. International Journal of e-Navigation and Maritime Economy, 2, 1-11.
Sarkis, J., Bai, C., Jabbour, A. B. L. D. S., Jabbour, C. J. C., & Sobreiro, V. A. (2016).
Connecting the pieces of the puzzle toward sustainable organizations: A framework integrating
OM principles with GSCM. Benchmarking: An International Journal, 23(6), 1605-1623.
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