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.


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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