PepsiCo is an American multinational food and beverage corporation headquartered in New York. It was formed in 1965 through the merger of Pepsi-Cola and Frito-Lay. PepsiCo has 22 product lines that each generate over $1 billion in annual revenue. In 2012, PepsiCo reported annual net revenue of $43.3 billion. The company manages its inventory using techniques like FIFO and LIFO to reduce costs and downtime at production plants. PepsiCo also utilizes various transportation and logistics methods like private fleets and direct store delivery to distribute its products.

1. Name Mohsin Raza
Roll No 26-FMS/MSCM/S17

2.  Its an American multinational food & beverage
 headquarter in Purchase, NY, USA.
 It was formed in 1965with merger of Pepsi Cola & Frito lay Inc. • Acquired
Tropicana in 1998 & Quaker oats in 2001.
 It has mainly 22 product lines generating $1 billion revenue each year.
 In 2012 it has annual net revenue of $ 43.3 billion.

3. Seasonality
subject to seasonal variations.
• Beverage sales are higher during the warmer
months and certain food sales are higher in the
cooler months
• Weekly beverage and snack sales are generally
highest in the third quarter due to seasonal and
holiday-related patterns, and generally lowest in
the first quarter
• However, taken as a whole, seasonality does not
have a material impact on our business

4. Raw Materials
 Raw material for Beverages:
• For drink: Water, sugar, color, caffeine
• For packaging: Tin, aluminum, PET plastic
Sources:
• More than 30% raw material of PET bottle comes
from organic waste
• 10% of packaging is done through recycled
products

5.  Raw material for chips and juices :
• Potatoes, oats, apples and milk
Sources :
• European organic farms
• Pepsi looks after the requirements of farmers
and also trains them to get desired size, color
etc.

6. Inventory Management
 Inventories are valued at the lower of cost or
market. Cost is determined using the average;
first-in, first-out (FIFO) or last-in, first-out
(LIFO) methods
 The Pepsi Bottling Group’s Detroit plant reduced its
number of sensors from 180 to 46
• A decrease of 66 percent, by standardizing it sensors
• Reduced downtime and inventory costs.

7. Transportation and Logistics
 PepsiCo manages 3 million Logistics
• Private fleets, dedicated
carriage, direct store delivery,
refrigerated trucks and
straight truck load shipments
• Uses various logistic
techniques
Direct Store Delivery
Broker Warehouse
Distribution
Vending & Food Service
System