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Frito Lay

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Frito Lay
Frito Lay
Question 1
How does the mix of Frito- Lay’s inventory differ from those at a machine or cabinet shop?
Since generally the Frito Company is primarily centered on focused facility much of its earnings and savings go into capitol equipment. Frito Lays keeps its inventory in MRO, as opposed to the normal cabinet shop where it does not need the MRO. Normally and most of the time Cabinet and machine shops store high inventories in the category of raw materials, work in progress and in their final products(inventory) each order is different then the next or pervious. Now for demand Frito Lay is not in an order setup like cabinet shop is, it can produce higher volume and a high efficiency product with a productive rate as well. This has a faster and a higher efficiency rate then cabinet and machine shop. Frito Lay takes its raw materials into wip and produces it quicker than in the final stage of production. Machine shop in general takes longer and is less efficient to the idea of labor hours.

Question 2
What are the major inventory items at Frito-Lay and how rapidly do the move through the process?
Some of the major inventory in Frito Lay is their leading money maker yes their very own potato chip which is a raw material. Followed by the raw material ingredients that are used to obtain and make the product some examples are the canola oil found in the chip, potatoes they cut up and corn seasoning used over the chip. This process includes delivery, the process and preparation of producing the chip this is all done at once to limit labor shifts.
Question 3
What are the four types of inventory?
Work in process- this includes scraping and peeling the potatoes, seasoning the potatoes and finally deep frying the potatoes.
Raw Materials- All the materials used to produce the chip Canola oil, seasoning used to bring the taste together, and potatoes of course.
Finished goods- Chips in bag, chips in a container
Question 4
How would you rank the dollar investments in

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