Frito Lay

Week 4 Case Study

1. What challenges do Frito Lay have?

Frito Lays is known as the one of the largest snack food industry and owned by the PepsiCo. Inc. The main objective of Frito Lays is to make the best snack of the world by reducing the conservation of energy, minimizing waste and by saving the water on earth. To remain competitive in the market, Frito Lay faces many challenges ad risks. For example: New product failure, seasonality issues, unstable raw material etc. Frito’s snack chip category is extremely competitive and product failure rate is very high. Another important challenge that Frito Lay is facing is creating the brand awareness of new product in order to expand the product in the market that requires a lot of money on the advertisements. In addition to this, Timing is also considered one of the common risk factor that Frito Lay is facing to move rapidly and efficiently with so many competitors to remain competitive and first in the market with Sun Chips.

2. Wheeled Coach

Lack of inventory – is this a problem or not for this type of business?

Wheeled coach is the largest manufacture of ambulance vehicles who are responsible for the final production of all ambulances in their production faculty. Inventory is the most expensive assets for these type of companies representing 50 percent of the invested capital and improper management of inventory causing problems for the company to process an order. Wheeled coach industries uses a number of inventory management policies to meet current requirements and minimizing the cost associated with maintaining inventory levels. To avoid the problem of lack of inventory, company maintain the successful material planning and management of inventory that will help in increase the turnover and profit for the organization.

What needs to be in place for this to work?

There are many things that needs to be in place to meet the customer needs and for the effective inventory management. In this case, IT...