Inventory Management in Layered Distribution Network of Global Company (Case Study of PepsiCo Holdings, LLC)

Inventory is one of the main assets of the company and it is one of the main costs in large FMCG companies. In particular the high share of the costs is the write-offs of products with expired shelf life, as well as on funds frozen in the inventories. This paper proposes a method of improving the efficiency of inventory management in distribution network taking into account these two parameters. The aim of this work is to develop efficient methods of inventory control in multi-layered distribution system of a production company through the following tasks: 1. collect information about activities of the company OOO "PepsiCo Holdings"; 2. analyse existing methods and the optimal choice for large manufacturing companies; 3. develop a system of inventory management in distribution network of the company; During research following methods were used: analysis of scientific literature and existing methods of inventory management in a distribution network, analysis of financial statements, modeling of business processes, creation of models using AnyLogic software, as well as optimization of parameters based on simulation modeling, analysis of economic efficiency using the model for strategic profits of DuPont. Scientific novelty of work is caused by the development of methods of management of diversified stocks in the distribution network, taking into account features of activity of the company, in particular taking into account shelf life and the cost of salvage products. According to the study the developed method is effective and can be used to optimize performance of a large FMCG company, for products with limited shelf life, as well as for further research in the field of inventory management in a developed distribution network.