Frito Lay Essay
1.) How does the mix of Frito-Lay inventory differ from those of a machine or cabinet shop, (a process-focused facility)? (Heizer, 513). It’s different than that of a machine or cabinet shop due to it being a product focused facility with high investment on capital equipment.
A.) Differences:
• The perishability of inventory in the “prepared” food industry calls for inventory management to be far more critical because it can significantly affects product satisfaction as well as market acceptance than in a process-focused facility such as machine or cabinet shop.
• Frito-Lay must maintain a dependable inventory of maintenance repair and operating supplies; (MRO’s) while not so critical for a process-focused facility; machine …show more content…
Lay’s produces a product faster and more efficient the production in a machine or cabinet shop; lays finished products move from production to distribution in less than 1.4 days.
• Frito-Lays is a product-focused producer rather than a process-focused producer; they produce a wide range of specially made (made-to-order) low-volume products or services.
The Process-focused facilities will have substantial; raw material for unexpected orders and substantial WIP due to imbalance in the system with fewer finished goods due to items are made to order.
2.) Why does inventory flow so quickly through a Frito-Lay Plant? (Heizer, 513). The inventory flows through so quickly through Frito-Lays plant because their plant is automated, technology advanced and very efficient with minimal breakdowns. Inventory has to move rapidly due to ingredients; potato and corn are perishable until they are processed and sealed in bags to prevent spoilage and freshness. “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. 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” (Heizer
A.) Differences:
• The perishability of inventory in the “prepared” food industry calls for inventory management to be far more critical because it can significantly affects product satisfaction as well as market acceptance than in a process-focused facility such as machine or cabinet shop.
• Frito-Lay must maintain a dependable inventory of maintenance repair and operating supplies; (MRO’s) while not so critical for a process-focused facility; machine …show more content…
Lay’s produces a product faster and more efficient the production in a machine or cabinet shop; lays finished products move from production to distribution in less than 1.4 days.
• Frito-Lays is a product-focused producer rather than a process-focused producer; they produce a wide range of specially made (made-to-order) low-volume products or services.
The Process-focused facilities will have substantial; raw material for unexpected orders and substantial WIP due to imbalance in the system with fewer finished goods due to items are made to order.
2.) Why does inventory flow so quickly through a Frito-Lay Plant? (Heizer, 513). The inventory flows through so quickly through Frito-Lays plant because their plant is automated, technology advanced and very efficient with minimal breakdowns. Inventory has to move rapidly due to ingredients; potato and corn are perishable until they are processed and sealed in bags to prevent spoilage and freshness. “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. 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” (Heizer