Read the article about digital supply chain management at Coca-Cola, available at the link below, and answer the questions that follow. Please note that every discussion point is worth half (½) a mark, and so a detailed discussion is required. Theory alone will not be graded. It must be combined with practical application. Use the Harvard referencing style.
Questions:
| 1.1 | Compare and contrast the transportation principles of economy of scale and economy of distance. Illustrate how they are applied in efficiently transporting drinks manufactured by Coca-Cola.
(2½ theory, 2½ application) |
(5 marks) |
| 1.2 | Discuss modes of transport suitable for distributing drinks manufactured by Coca-Cola and justify your answer.
(2 theory, 2 application) |
(4 marks) |
| 1.3 | Suggest forecasting techniques that Coca-Cola could apply and give examples in line with the case study.
(2 theory, 2 application) |
(4 marks) |
| 1.4 | Advise Coca-Cola about the inventory management policies they could adopt in their logistics operation.
(1½ theory, 1½ application) |
(3 marks) |
| 1.5 | Discuss how uncertainties about inventory may be managed at PepsiCo and Coca-Cola, and use products offered in both companies as examples
to justify your answer. |
(9 marks) |
Answers to Above Questions on Logistics Management
Answer 1: The transport principle of economy of scale and economy of distance indicates that economy of scale is associated with the cost advantages that accounts from producing goods and services at a larger scale, whereas the concept of economy of distance is associated with the transportation cost that increases with the distance travelled increases.
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