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Transcript of BULLWHIP EFFECT
“Increase in variability as one travels upstream in the supply chain “.
Coca Cola and its Minutes Maid and Simply Orange brands:
For Coca Cola, Producing orange juice in consistent quality requires complicated process. Coca Cola uses computerized system called Black Book. This system uses algorithm to produce information how to blend batches of orange fruits to replicate certain taste and consistency.
Capacity Management & Planning Strategy
Brett Frankenberg, Vice President of SC Planning and Procurement at Coca-Cola Bottling Company Consolidated, presents at JDA FOCUS CONNECT 2011
The Four Drivers in Supply Chain Management
Minimal excess capacity
Low number of facilities
Multiple product focus
Single Inventory Storage Location
Low levels of inventory
Ship products to a distributor
Reduces Cost and Speed of delivery
Shares only selected information
variety of products
# of stories: Single story
Height: 6-9 mts.
Product Flow: Straight-line product
...Fewer longer moves
Movement Scale Economies
Private warehouse &