A process simulation of inventory planning and control for Minute Maid Pulpy at Coca-Cola

Abstract

This research aims to develop a process simulation model for the synchronisation of multiple decision parameters to ensure in full and on-time delivery. Previous research overlooks the decision complexity of inventory planning and controlling in a logistics network that consists of various divisions with different hierarchy of functions. A case study at Coca-Cola was conducted to find out the value of synchronising decision parameters of inventory planning and control for a popular line of beverages called Minute Maid Pulpy with a unique fruit flavour. Monte Carlo simulation was employed to assess the optimal operational performance for the company under various alignment scenarios. The process simulation showed that the most optimal performance was obtained by using 3.5-day coverage as the level of inventory target in the plant, updating master of production schedule based on ending inventory at the distribution centre, and using predicted ending inventory to reduce the replenishment time.