Homework 1 - IDS454

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University of Illinois, Chicago *

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454

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Marketing

Date

Feb 20, 2024

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docx

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Uploaded by ColonelBraveryWalrus22

1. Identify a particular product item, the maker, and a retailer of that item. The product I chose is a bottle of bottle of Pepsi. The maker of this bottle is PepsiCo Inc. Pepsi products are sold at Walmart’s all over the world. I would like to consider that retailer for this homework. 2. Describe the various stages of that item’s supply chain and the different flows involved - draw a diagram. The first step in a bottle of Pepsi’s supply chain is raw material sourcing. According to SupplyChainToday, “PepsiCo’s supply chain begins with the procurement of raw materials and ingredients, which includes a variety of agricultural products such as grains, fruits, vegetables, and spices. These raw materials are sourced from a network of suppliers around the world, including farmers and other agricultural producers.” The next step in the supply chain would be manufacturing. Which involves combing the raw materials and then bottling the product. PepsiCo has over 65 manufacturing sites. The following step would be packaging the product. This involves adding a label. Once Pepsi is bottled and labeled, we must now look at the distribution of the product. Bottles are transported from the manufacturing facilities to regional warehouses. Even though PepsiCo. has 420 distribution centers, they use a combination of its own distribution networks and third-party logistics providers to distribute its products around the world. 3. Identify the push/pull boundaries if any on the diagram and explain why In the case of Pepsi, the push/pull boundary occurs between the Manufacturing and Distribution stages. Manufacturing is typically a push-based process where PepsiCo produces a certain quantity of bottles based on forecasts and historical data. Once manufactured and ready for distribution, the supply chain shifts to a pull-based system, responding to actual customer orders and store demand. 4. How does implied demand uncertainty affect the design of this supply chain? Implied demand uncertainty in the beverage industry is influenced by factors like seasonality, marketing campaigns, and changing consumer preferences. To address this uncertainty, PepsiCo designs its supply chain to be flexible, enabling rapid production adjustments to meet varying demand patterns, especially during peak seasons or promotional periods. 5. What aspects or portions of the supply chain were impacted by COVID and how?

6. Describe what measures were taken to offset these impacts According to a podcast on the website Supplychainbrain.com, a large issue that PepsiCo faced was ensuring the safety of their production-line labor force. According to PepsiCo`s website, “we are practicing social distancing at all our facilities around the world and have asked all PepsiCo associates who have the option, to work from home.” So by practicing social distancing and proper hygiene PepsiCo was able to continue business. The FDA claimed that “there is no evidence that food or food packaging is associated with the transmission of COVID-19.” That is a silver lining for all the food and beverage manufacturers. The one good part about COVID-19 and PepsiCo`s operations is that consumer behavior began to shift, and more people were purchasing Pepsi for at-home consumption.

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