Industrial Engineering

A Case Study of Location Distribution, and Capacity Expansion Decision at Anadolu Efes

EFE AYDIN

İPEK KAYAN

BERTUĞ ALTAN

04.00.

TABLE OF CONTENTS

INTRODUCTION 2

PART 1: Current Production and Distribution System of Efes2

Part II: Capacity Expansion Decisions3

Conclusion6

INTRODUCTION

Anadolu Holding was founded in 1969 in İstanbul. It is carrying on many sectors such as automotive, office supplies, financial and beverage sectors. Efes Beverage Group is the largest business unit of Anadolu Holding. The principal activities of Efes Beverage Group are in the production and distribution of malt, beer and plastic crates. Efes is dominating the Turkish beer market in the last 20 years. The company has reached an influential 78% market share in 2000. Moreover, The Company has bought the right to bottle Coca-Cola in Turkey in 1998 so it has extended its business line, and has become a multinational company by building up international brewing operations mostly in Eastern Europe, Russia and Central Asia. In November 2001, the value of Anadolu Efes has reached $ 1.143 million. In May 2002, the company has become the eighth largest Turkish company by market capitalization. But nowadays, the company is facing a problem. The problem is that the anticipated increase in beer demand will surpass Efes’ total production capacity in a couple of years. To solve this problem, Emre Yaman who is the Chief Executive Officer of Efes has a big project in his agenda: opening new breweries and expanding them. However, he doesn’t know yet where and when should new breweries be opened and when should they be expanded. In this case, we tried to answer these questions which are in Emre Yaman’s mind by using some constraints, tables, figures, graphs and software ( Excel Solver ) .

PART 1: Current Production and Distribution System of Efes

To see that the total transportation cost of Efes Pilsen could be decreased or not, we analyze the current data.

Xij: Amount of malt...