Case study:
Managing Inventory at Frito-Lay
Frito-Lay has flourished since its origin—the 1931 purchase of a small San Antonio firm for $100 that included a recipe, 19 retail accounts, and a hand-operated potato ricer. The multi-billion-dollar company, headquartered in Dallas, now has 41 products—15 with sales of over $100 million per year and 7 at over $1 billion in sales. Production takes place in 36 product-focused plants in the U.S. and Canada, with 48,000 employees.
Inventory is a major investment and an expensive asset in most firms. Holding costs often exceed 25% of product value, but in Frito-Lay’s prepared food industry, holding cost can be much higher because the raw materials are perishable. In the food industry, inventory spoils. So poor inventory management is not only expensive but can also yield an unsatisfactory product that in the extreme can also ruin market acceptance.
Major ingredients at Frito-Lay are corn meal, corn, potatoes, oil, and seasoning. Using potato chips to illustrate rapid inventory flow: potatoes are moved via truck from farm, to regional plants for processing, to warehouse, to the retail store. This happens in a matter of hours—not days or weeks. This keeps freshness high and holding costs low.
Frequent deliveries of the main ingredients at the Florida plant, for example, take several forms:
Potatoes are delivered in 10 truckloads per day, with 150,000 lbs consumed in one shift: the entire potato storage area will only hold 7½ hours’ worth of potatoes.
Oil inventory arrives by rail car, which lasts only 4½ days.
Corn meal arrives from various farms in the Midwest, and inventory typically averages 4 days’ production.
Seasoning inventory averages 7 days.
Packaging inventory averages 8 to 10 days.
Frito-Lay’s product-focused facility represents a major capital investment. That investment must achieve high utilization to be efficient. The capital cost must be spread over a substantial volume to drive down total cost of the snack foods produced. This demand for high utilization requires reliable equipment and tight schedules. Reliable machinery requires an inventory of critical components: this is known as MRO, or maintenance, repair, and operating supplies. MRO inventory of motors, switches, gears, bearings, and other critical specialized components can be costly but is necessary.
Frito-Lay’s non-MRO inventory moves rapidly. Raw material quickly becomes work-in-process, moving through the system and out the door as a bag of chips in about shifts. Packaged finished products move from production to the distribution chain in less than 1.4 days.
Questions:
How does the mix of Frito-Lay inventory differ from those of a machine or cabinet shop (a process-focused facility)?
In your opinion, why does inventory flow so quickly through a Frito-Lay plant?
Explain FOUR (4) types of inventory available in Frito-Lay.
Discuss FOUR (4) importance of forecasting for operation management functional area of an organization.
Frito-Lay store in North Georgia stocks chips in its warehouse and sells it through an adjoining outlets. The store keeps several types of chip in stock, however its biggest seller is Super Ring Chip. The store wants to determine the optimal order and total inventory cost. Given the annual demand of 10, 000 boxes of Super Ring Chip, an annual carrying cost of $0.75/ pounds and ordering cost of $150. The Frito-Lay store would also like to know the number of orders that will be made annually and the time between orders. Given the store is open every day except Sunday and new year.
The optimal order quantity per order.
The minimum total annual inventory costs.
he optimal number of orders per year.
The optimal time between orders (in working days).

Gatsby tried to impress Daisy by showing her his mansion and his expensive clothes. The appropriate response is choice (2).

The Great Gatsby is a book that was written by American author Scott Fitzgerald and released in 1925.  The book's first-person narrator, talks about his interactions with the mysteriously wealthy Jay Gatsby and his preoccupation with finding his past lover Daisy Buchanan. The story takes place in Long Island, a neighborhood of New York City, during the Jazz Age.

In Jazz Age New York, it depicts the tragic tale of self-made millionaire Jay Gatsby's pursuit of Daisy Buchanan, a wealthy young woman he once loved.

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During the question phase, data analysts examine the current situation and note how it differs from the ideal situation. Relationship between the data analysis process's requesting phase and the data life cycle's planning phase:

data analysts is crucial in the modern, technological environment. Data goes through a several phases/stages as it is created, consumed, tested, handled, and reused for as long as it can remember. Data transformation and verification are topics Relationship by the data life cycle; data analysis uses the knowledge discovered by the data. The stages that data goes through during its useful life are covered by the data life cycle; data analysis is the process of evaluating data.

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A flowchart of the points of contact between the client and the provider is made during a customer contact audit. A flowchart is a diagram that shows a process' individual steps in their proper order.

It is a general tool that may be customized for a wide range of uses and used to define a variety of processes, including a project plan, an administrative or service process, or a manufacturing process. It is one of the seven fundamental quality tools and a typical tool for process analysis. An activity sequence, materials or services entering or exiting the process (inputs and outputs), decisions that must be taken, participants, the amount of time required at each step, and/or process measurements are examples of elements that may be included in a flowchart. to gain knowledge of how a process is carried out.

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A manager notices that food handlers are eating their lunch behind the cooking line. The manager should: conduct training on where food handlers can eat

A manager is a professional who leads an organisation and manages a team of employees. Managers are frequently in charge of a specific department within their company. There are various types of managers, but they alal have responsibilities such as conducting performance reviews and making decisions. A manager plays an important role duty is to devise a strategy to accomplish the company's goals and objectives. This includes assigning employment funding and delegating accountabilities, as well as establishing realistic completion timelines and standards.

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In the event that consumers anticipate price increases in the future, they will want more now.

A good or service's total quantity demanded during a specific period of time is referred to in economics as the quantity demanded. Whether a market is in equilibrium or not, it depends on the cost of an item or service. The demand curve—or just "demand"—is the connection be demand is the measure of how much the amount required alters in response to price.

The quantity that consumers desire in a market is determined by the price of a commodity or service. A higher price causes a lower amount demanded, while a lower price causes a higher quantity demanded, assuming that non-price elements are taken out of the equation. As a result, the law of demand states that there is an inverse relationship between the price of a good and the quantity demanded for it.

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The three steps to fix an amount that was put to the wrong column are:

In the column where you uploaded it wrongly, put a line through the incorrect item.

note the accurate amount being posted in the column.

Recalculate the account's overall balance.

What Is a Balance in an Account? The amount of money held in a financial institution, such as a savings or checking account, at any particular time is known as the account balance. The net amount after taking into account all debits and credits is always the account balance.What is the balance?

The balance is the sum of money owed (or due) on an account in banking and accounting. The term "balance" in bookkeeping refers to the difference between the total of debit entries and the total of credit entries made into an account over the course of a certain financial period.

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Identification of the stakeholders, clarification of the interests and influence of stakeholders, agreement on the process of interaction between stakeholders, and management of the relationship with stakeholders are the four steps in the stakeholder analysis process.

Stakeholder analysis should be done carefully. It is a crucial factor in determining how effectively a project may be carried out and how effectively it is anticipated to produce outcomes. Your project is guaranteed to succeed if you have the correct internal and external stakeholders working in your favour.

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In order to compete successfully, businesses can use IT integration to make the most of their current processes, personnel, technology, and information. Businesses that lack integration, on the other hand, frequently lament major cost increases and resource use.

Organizations in the modern era are driven by business integration, which is a major growth driver. The organization's energy usage will be decreased by a well-integrated system, which also makes it possible to dig deeper into crucial customer data. Therefore, in order to connect various business operations, firms of today are integrating with various platforms.

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MyConcerto can help to lower risk, boost ROI, and quicken time to value by

Accenture has unveiled Accenture myConcerto, an insight-driven, integrated platform that enables businesses to improve their capacity for innovation, amp up their financial performance, and quicken the process of becoming intelligent enterprises.

Accenture myConcerto (formerly known as the Accenture Intelligent Enterprise Platform) brings together Accenture's most disruptive ideas around industry, innovation, and technology to deliver greater business value more quickly and easily. It is already in use with more than 60 clients across the globe using SAP solutions.

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California had the highest tax revenue of any state, totaling 248.19 billion US dollars.

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Excess inventory is not one way to protect against supply chain unpredictability. Safety stock inventory, also known as buffer stock, is the amount of excess stock kept on hand to reduce the danger of running out of raw materials.

A safety stock is an additional quantity of a product that is kept in the warehouse to avoid an out-of-stock situation. It acts as a hedge against swings in demand. A safety stock is an additional quantity of a product that is kept in the warehouse to avoid an out-of-stock situation. It acts as a hedge against swings in demand. Safety stock protects you from unexpected demand increases and erroneous market estimates that might occur during a busy or festive season. It acts as a buffer when the things you bought take longer than expected to arrive at your warehouse.

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The net rise in cash for the year, according to the question, is 3,92,700.

Cash payments are made to the provider of services or products by the recipient in the form of coins or notes. It may also entail paying employees within a company for the hours they worked or compensating them for tiny expenses that are too little to have processed through the account receivables system.

The net increase in cash for the year is $3,92,700

Cash Flow from Operating Activities:

Net Income $3,15,000

Reconciliation of income statement to cash reserves from operating activities adjustments:

Depreciation ($14800 - $10500) $93,700

Loss on sale of equipment $10,600

Increase in Accounts Receivables -$42,600

Decrease in prepaid expenses $10,800

Increase In Accounts Payable $16,200

Decrease In wages payable -$13,300

Net Cash Flow from Operating Activities $3,92,700

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The primary concern for investors who use a buy-and-hold strategy to maintain their portfolios is to ensure that their portfolio remains diversified and balanced.

To do this, investors must regularly assess the performance of their investments and make sure that they are still in line with their goals and risk tolerance. This involves monitoring asset allocations and rebalancing their portfolios when necessary. It also involves researching the underlying investments and making sure they remain sound and have good prospects for the future. Lastly, investors need to stay informed on current market conditions and make adjustments as needed to keep their portfolios in line with their long-term goals.

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Producers of a strong company once in a while sell it to dealers only if they will take some or all of the relaxation of the line. This is called full line forcing.

Having a robust brand is all about consistent and recognizable enterprise expressions; to provide now not only merchandise and services however additionally meaning. In many ways, a sturdy company is the nucleus of a company's success and is the end result of an high-quality brand strategy

These are the four essential company factors that you will need to address when creating your manufacturer strategy. A strong manufacturer requires a robust manufacturer identity, company image, manufacturer culture, and company personality.

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All taxes may be broken down into three categories: taxes on your purchases, taxes on your income, and taxes on your assets. When purchasing the majority of products, services, consumers must pay sales taxes.

Individual income taxes, corporate income taxes, capital gains taxes, estate taxes, and property taxes are examples of direct tax.

A delivery of goods or services or perhaps both made to a registrant may be subject to the following taxes: the central tax (CGST), the state tax (SGST), the integrated tax (IGST), or the union territory tax (UTGST). It also comprises integrated tax, merchandise and services tax payable on imports of items, as well as tax paid on a reverse charge basis.

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The basic structure of the bones is the bone matrix, which constitutes the underlying rigid structure of the bones,composed of both compact bone and cancellous bone.

The bone matrix consists of tough protein fibers,mainly collagen,which become hard and rigid due to mineralization with calcium crystals. Osteoblasts and osteocytes, responsible for creating bone,osteoclasts or bone resorption cells,osteoid,a mixture of collagen and other proteins, inorganic mineral salts within the matrix,nerves and blood vessels, bone marrow,cartilage.Bone is a mineralized connective tissue that has four types of cells osteoblasts, bone lining cells, osteocytes, and osteoclasts. Bone performs important functions in the body,such as locomotion,soft tissue support and protection, calcium and phosphate storage,and housing for bone marrow.

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An equipment purchased last year is an example of a sunk cost.

Sunk costs are expenses that have already been paid for and cannot be retrieved. No matter what actions are taken in the future, the cost has already been incurred and cannot be changed. These costs attempt to explain why people are unwilling to just give up anything they have previously invested in, leading them to continue making investments even when they cannot recover their initial costs.

Equipment purchased last year is an example of a sunk cost as it is a past cost that has already been incurred and cannot be recovered. For example, if a company purchased equipment last year for $175,000, that cost is a sunk cost because it has already been paid and cannot be recovered. The company cannot change the fact that it paid $175,000 for the equipment, no matter what it does going forward.

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Based on the given information, using the straight-line method, the depreciation expense for 2022 and the book value on December 31, 2022, would be $6,735 and $ 60,030 respectively.

The expected decline in the worth of an investment property over the course of a financial year is represented by depreciation. To perform a calculation (Cost of an Asset - Residual Value)/Useful Life is the formula for the straight line depreciation method.

To calculate depreciation expense using the straight-line method

Depreciation expense = (($73,500 −  $6,150) /10) = $6,735

To calculate book value using  the straight-line method

Book value = $73,500 - (2*6,735)

                    =$73500- 13470

                    = 60, 030

The depreciation for the year 2022 is $6,735 and the book value on December 31, 2022, would be $ 60, 030.

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NAFTA boosted alternate by means of casting off all tariffs among the three countries. It also created agreements on global rights for commercial enterprise investors. That decreased the price of commerce. It spurs funding and growth, specifically for small businesses.

The North American Free Trade Agreement (NAFTA), which used to be enacted in 1994 and created a free exchange quarter for Mexico, Canada, and the United States, is the most essential feature in the U.S.-Mexico bilateral industrial relationship.

North American Free Trade Agreement (NAFTA), controversial trade pact signed in 1992 that gradually eliminated most tariffs and different trade obstacles on merchandise and offerings passing between the United States, Canada, and Mexico.

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The  receivables turnover ratio for the year is 4.0

Receivable turnover ratio = Credit sales/Average accounts receivable

=850000/210000

=4.0

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As per the given transactions, median voter will vote to spend $30 per person and the voting outcome will be $1590 per person.

The term transaction in economics is a completed agreement between a buyer and a seller to exchange goods, services, or financial assets in return for money.

Here we have given that  issue in a particular city vote is how much to spend, per person, on city parks next yea

And we need to find median voter will vote to spend $30 per person and the voting outcome

While we looking into the given question, we have identified that if there is a vote on whether to spend $30 per person or $150 per person, then the number of individual who spend 1000 to 3000

Then the median voter will vote to spend is calculated as

=> M = (3000 + 180)/2 = 1590

Here the median voter will vote to spend $30 per person and the voting outcome will be $1590 per person.

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Using a coupon for things you haven't bought, stealing modest consumer goods, and eating products in-store without paying for them are all examples of unethical consumer behavior.

Good and evil behavior is distinguished by ethics. Ethical and immoral are adjectives, thus they can be used in front of phrases like problems, behavior, practices, and so on. All of these are connected to how people behave or conduct their private lives. Morally corrupt behavior is what we call unethical.

Equity, rights, honesty, and the use of corporate power are the four categories into which ethical behavior in business can be separated. Business enterprises must balance their obligations to their customers, shareholders, employees, and the general public. Consequently, the discipline includes social, personal, business responsibility, loyalty, fairness, respect, trustworthiness, and technology ethics.

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The Japanese word "visual card" or "signboard" is kanban. The visual and physical signalling system that connects the entire Lean manufacturing agile system is known at Toyota as Kanban.

The Japanese word "visual card" or "signboard" is kanban. The visual and physical signalling system that connects the entire Lean manufacturing system is known at Toyota as Kanban. Kanban has been utilised in lean production for more than 50 years. It is currently being updated for various disciplines, such software.

Anderson outlined five essential elements of every successful Kanban technique implementation. Make process policies explicit, manage flow, limit work-in-progress, visualise the workflow, and improve collaboratively.

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Integral development is the general name given to a host of policies that work in tandem to foster sustainable development in both developing and underdeveloped countries.

A guiding precept in sustainable improvement is preserving the ability of herbal structures to preserve offering the herbal sources and surroundings offerings which are critical to the financial system and society.

'Development that satisfies the necessities of the prevailing technology without compromising of destiny generations to satisfy their very own needs' is how the Brundtland Report of 1987 described sustainable improvement. As the concept of sustainable improvement evolved, it shifted its emphasis greater in the direction of the safety of the surroundings for destiny generations in addition to the financial and social development of society.

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The Annuity = 372.79. The required answer is option (b).

The practise of calculating the income accrued quarterly on a deposit account or investment, estimated based on the principle amount principal and interest earned for prior periods, is known as quarterly compounding. The term "compounding quarterly" describes the amount of interest that is earned on a bank account or investment on a quarterly basis when the cash is also recycled.

n = 3 years adjusted for quarterly compounding =3*4=12

r = 8% adjusted for quarterly compounding =0.08/4 =0.02

[tex]FV_{OA} = Annuity*\frac{(1+r)^n-1}{r}[/tex]

[tex]5,000 = Annuity*\frac{(1+0.02)^{12}-1}{0.02}[/tex]

5,000 = Annuity*24.2973698

5,000 = Annuity*13.41208973

Annuity = 372.79

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Companies are viewed as myopic if they define their missions in terms of products or technologies, mainly because these things eventually become obsolete.

No shortage of things are lauded as "revolutionary" or "completely transformative" when they are first released. Sure, every firm that introduces a new device into the world likes to think that its cutting-edge design and sophisticated new production method will fundamentally alter the way we interact with technology in the future. They do, however, naturally believe this because it occasionally occurs. The seven different product categories are: Luxury or premium goods. unwelcome goods. NicheProducts. Commodities. preferences of consumers. Convenience items. complementing products. Electronic, mechanical, medicinal, industrial and manufacturing, and tool technologies are five examples of different forms of technology.

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erica is analyzing the shares of songatikamas company. the company currently pays a dividend of $2.50. she believes the company has a new product that will result in supernormal growth of 20% for two years

     the value of songatikamas  Div 3 = 3.708  

Div 3 = Div0*(1+g1)^2*(1+g2)           Div0 = 2.5             g1 = .20             g2 = .03             Div 3 = 2.5*((1+.20)^2)*(1+.03)   Why do you use the term shares?

Shares are fractional ownership interests in a corporation. For some businesses, shares are a type of financial instrument that allows for the equitable distribution of any declared residual profits in the form of dividends. A stock with no dividend payments does not distribute its income to its shareholders.

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To track Profits and Losses in QuickBooks Online, we should go to the tile called Profit and Loss. Then Hover over the net income amount on the tile, at the very top and click the net income amount.

Profit or what we also know as profit is something that describes the financial benefits that are realized when the income generated from business activities exceeds the costs, fees and taxes involved in supporting the business activity concerned. Any profits made are funneled back to the business owner, who chooses to either pocket the cash or invest it back into the business. Profit is calculated as total revenue minus total costs.

The three main types of profit are gross profit, operating profit, and net profit - all of which can be found on the income statement. Each type of profit provides analysts with more information about a company's performance, especially when compared to other competitors and a specific period.

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A barter economy relies on goods as a primary medium of exchange for trade of other goods and/or services.

A barter economy can be referred to or considered as a form of economy wherein the use of money is completely nonexistent. However, the exchange of goods is done through some other goods.

There are certain discrepancies and irregularities in store and measure of value of goods in a barter economy. It also does not lead to creation of artificial demand in the economies. Such economies are not in relevance around the world currently.

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A code of conduct outlines the policies and procedures that employees and employers must follow in the workplace.

The five codes of conduct are as follows:

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