Simulation Of Inventory Planning And Control Essay


Discuss about the Simulation of Inventory Planning and Control.



Supply chain management is a field of business which impacts the students and the business holders an important aspect of the best method through which one can ensure smooth flow of the inputs and output in the firm. It gives the framework through which the best managerial workload in the logistics sector of an organization should be put in place. Companies who apply the most suitable model of the supply chain in the firm will avoid the challenges which come with recklessness. For instance, their businesses will not face theft and fraudulent activities since all behaviors are in an organized perspective. In our case, one will delve upon Coca Cola manufacturing company. As the supply manager of this large corporation, one is expected to have the best modus operandi so as to counter defy arising from running a big organization. Additionally, Christopher, (2016) states that, Coca Cola is a multinational association and thus the manner in which the inflows and the outflows moves should be critically studied. This corporation was established in 1886 by purchasing the franchise rights of the Coca-Cola formula and brand which was dealing with nonalcoholic drinks. Later on, the management decided to incorporate it and develop into a soft drink company. By the year 1929, this association at established branches all over the world dealing with the manufacturing of different kinds of soft drinks under the umbrella Coca-Cola. Currently, it is found in all continents. Besides, it is ranked the best in the production of nonalcoholic drinks in the universe. Its achievement was realized from the well-developed distribution and strategic management from the headquarters (Souza, 2014). Therefore, in this piece of work, one will delve upon the core flows in the supply chain, the make process, the supply chain forecast of the Coca-Cola enterprise so as to come up the precise information pertaining procurement administration.

Key flows in supply chain

The efficient flow of different constituents of a company production is pivotal in ensuring there is the coherence of the manufacturing involved. These mechanisms encompass products, information, and cash and return flow. The Coca-Cola Company has all these strategies in place so as to pave the way for continued improvement of its trade globally. The corporation has an integrated production flow so as to ensure the business runs accordingly. Their processing plant is created in such a way that they receive the sugar from the supplier and the concentrated formula from the coca cola international. After having received, they dilute and the process of the formulae which are then bottled in different plants owned by the company (Pinho, et al., 2017). The product is later own sold to the regional dealers who then ensure they reach those dealing with them from a local perspective. The final stage in production ends with the selling of the product to the consumer.

Additionally, the information system of Coca Cola Company is also quite modernized. The supply chain information flows from the suppliers to the manufacturers as per the request and vice versa. The manufacturers then consult with the different branches dealing with the assembly concerning the products as well as the various management sectors of the branches (Liu, Yeh & Lo, 2017). As the distribution continues, the meeting point communicates with the retailers concerning the amount they need as well as the distributors communicate with assembly point by giving out their views. The consumers and the retailers from the last stage in which the customers receive the information from the retailers as well as the retailers receive complaints and so forth from the buyers. The kind of communication used in coca Company is a two way method (Goodier, 2015). It is represented in the table below;

The cash and return flow are also utilized in the corporation so as to ensure sustainability of different sectors of production in it. The consumers buy the soft drink from the retailers who sell them in their shops. The money collected is used by the retailers to purchase the soft drinks from the wholesalers who make their direct purchases from the assembly points (Papadopoulos et al., 2017). The funds received from the sales are sent to the Coca Cola International who uses the returns in making of the budget for the company (SHARMA, 2016). Coca-Cola Company should apply some theories so as to guarantee their continued sustainability in the trading field. Primarily, they should employ strategic choice theory which entails that the company should have a well-developed system through which they can deal with political forces which might affect the distribution of their yields. This approach will ensure the challenges experienced by the company in war-torn parts of the world are solved. Besides, the company should apply the use of systems theory in solving matters related to financial, human and information material in the firm. The company should apply this model so as to certain that the internal and the external factors shaping up the business improve (Wieland & Handfield, 2016). The game theory can be included as well in the running of the endeavor. It helps in solving of the different decisions affecting the firm, for instance, the managerial body in making decisions.

The make process

The production planning is one of the critical sections a company mainly dealing with foodstuffs component must have so as to avoid challenges ranging from competition, loss of market and even complaints from the consumers. The complaints may be as a result of substandard products and so forth. The coca cola company has an excellent system of planning in their production and material sector. They have achieved this through application of tools of planning. Notably, the mission and vision statement serves as a framework through which everyday action is pecked upon. They ensure that their working conditions are convenient for people of all ages and so forth. Moreover, they are driven by the portfolio of quality brands of beverages. According to Esmaeilikia, et al., (2016), the materials used in the production are received directly from the head office in Argentina to different plants in the world. The host countries managerial bodies are given the mandate of procuring sugar from the suppliers of their choice. On the arrival of the concentrated beverage material, the already assembled sugar is mixed with the water and other chemicals as measured by the food scientist employed by the corporation. After that, the products are packaged in bottles of different capacity and crated ready for distribution to the buyers. The production process has been simplified by use of the diagram below;

To improve the processing and material collection, Coca Cola Company should apply the resource-based theory in running its company (Mohamed & Omwenga, 2015). This argument is based on the usefulness of the different material in the firm. For instance, the company should be vigilant on the way in which they keep their materials. It is pivotal for them to have a store in which they should be keeping of the crates of bottles of different magnitudes. The resultant will ensure that they are in good shape so as to avoid breakage and likewise ensure that they are safeguarded from theft. Furthermore, the company will have a constant accessibility in keeping vigil on the manner at which production is taking place in the firm. The sole aim of this theory is also to keep the company on toes concerning what they need in the production. These ideas will lead them into making of the budget pertaining them in an overt manner (Genovese, et al., 2017). The aiding principle is the transaction cost economic theory which outlines that the company should have a list of their required materials so as to give room for drawing of the budget as per the materials. The Coca Cola Company should use this ideology so as to avoid incurring a lot of unnecessary expenditures resulting from assumptions on the resources needed for production purposes.

Supply chain forecast

Various companies use forecasting models in coming up with the most practical framework through which production can be achieved in the enterprise. This measure has been made possible through the availability of different market patterns encompassing the several business organizations globally. Coca Cola Company being among profit-making companies should also consider making use of different available forecasting models in the market (Correia et al., 2017). There are two dominant forecasting techniques available in the market which include; quantitative and qualitative models. The qualitative prediction approach entails the use of judgmental values while trying to establish the future aspect of the trade in the firm. This method is utilized in the cases where the data available is insufficient, unavailable or it is no longer relevant for the use in the company. The commonly used types of qualitative analysis in the business spectrum are; market research, personal insights, panel consensus and visionary forecasting. They are based applied in the introduction of new product in the market. On the other hand, the quantitative prediction technique in which the data which is already in existence in the company from the archives is used in projecting future demands for the firm. The information gathered from the previous undertakings of the business is put on a graphical representation and therefore serve as a basis through which action in future commitments of the company should be established (Coyle et al., 2017). The graphical representation can be in several dimensions such as downwards or upward. The downward extrapolation gives a picture that the company has been performing poorly and thus need for strategic decision making in future concerning mechanisms of how one can revive the firm. On the contrary, the upward shows a positive way through which the company is running. It enables the administrative team to be certain that the future of the company is bright. Coca Cola Company should apply the use of quantitative theory in projecting its future trends in the business. This company has been running for over hundred years, and thus the relevant history and reliable data pertaining production and sales in the firm are available. Therefore, they can use them in coming up with the picture on where or how the company can run its activities in the latter stages. The information and the trends in which this company has been experiencing in the past will be successfully applied in the analysis of the demand both in the financial and ensuring the output of the firm is integrated well. The step will ensure that the business does not collapse since the budget and the measures put in place during the forecasting are an ultimatum for its growth in the supply perspective.


Various scholars view supply chain management as the crucial part in which all organizations in the business should ensure it succeeds. This section is pivotal in that all the activities encompassing the business from the management to the lowest point in the enterprise depend on it in measuring the capability of growth in the company (Andini & Simatupang, 2014). The supply chain manager is entitled to have a broad range of original dimension in which should be well utilized in any given corporation. By doing so, it can lead to the realization of profits as well ensuring that the firm is working towards sustaining itself due to the presence of cutthroat competitions in the market which if not well analyzed, the company may engage in subsequent losses. Consequently, the supply chain administrator of any firm should ensure that they apply the key flow chains so as to bring about the most efficient coordination of the enterprise. For instance, Burgess et al., (2017) allude that; organizations should ensure they implement the manner in which the products, information, and cash and return flow are coherent so as to pave way for amendments in case any of it is not performing well. They should thus guarantee the manner in which information is drawn from the highest level to the lowest to be systematic by use of electronic media so as to avoid distortion and so forth. The production should be methodical by making sure it follows the designated levels. The cash and the return flow should also be in line with the production and budgeting agenda of the company.

Additionally, the company should be able to guarantee the availability of an effective production and material requirement planning in the firm. The line of production and the materials used in achieving the output should be available always. The managerial body should put more efforts in ensuring they purchase them on time so as to avoid stoppage of production in the firm. The coca cola company must always have bottles and the concentrated material and sugar so that the business workload becomes consistent. On the other hand, Dubey et al., (2017) highlights that, the company should apply the best forecasting mechanism so as to allow for budgeting on the practices which may affect the company either positively or negatively in the future. Beside, one will be able to have measures to curb the uncertainties which may affect the company in latter times. The realization of this in a firm should be characterized the availability of splendid knowledge on several theories of logistics. The ideologies provided will assist in enhancing the running of the corporation in an explicit manner. The models put in place include; quantitative and qualitative approaches, the cost economic theory and the systems ideology among others.


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