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Essay / Research Paper Abstract
A 4 page paper. The essay discusses and comments on different issues, including production costs, supply chain management, if it could improve productive capacity and the concept of the production possibility frontier. Bibliography lists 7 sources.
Page Count:
4 pages (~225 words per page)
File: MM12_PGcocec.rtf
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Unformatted sample text from the term paper:
produce the final beverage (Zoominfo.com, 2008). It has more than 400 brands but it does not produce the final product in any of them (Zoominfo.com, 2008). The company provides the
syrups and concentrates to franchisees who use these to make the final beverage although the company holds interests in some of the major bottlers and distributors. Sugar may be
the largest ingredient used. In December 2007, the cost of refined sugar was $300 per ton (Mahdi, 2007). This was down from $500 per ton the previous year (Mahdi, 2007).
The actual formula Coca-Cola uses is a very tightly held trade secret so there is little information regarding the exact ingredients and thus, little information of the costs of their
supplies. Specifically, the company uses high fructose corn syrup, sucrose, aspartame, and citrus concentrates. The companys last income statement revealed that the cost of goods sold was (millions) $10,406.0
(Hoovers Inc., 2008). This statement also tells us that the operating margin was 25.1 percent and their net profit margin was 20.7 percent (Hoovers Inc., 2008). 2. Supply Chain
Management According to the company, the Coca-Cola system is: they produce the concentrates and bottling partners manufacture, package and distribute the product. The supplies used include sugar, citrus, coffee
and other flavors, and water (Coca-Cola, 2008). Suppliers are those companies that provide the ingredients for the concentrate syrups. In 2004, Coca-Cola changed their supply chain to achieve greater
efficiencies (Foley, 2004). The company had spent the better part of a year combining three business units in North America to make one more efficient integrated unit (Foley, 2004).
The process streamlined information technology, procurement processes and supply chain operations (Foley, 2004). The company made another change in 2006 when it began delivering its products to Wal-Mart warehouses following
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