Abstract:
The project is about the franchise of Pepsi Co. Northern Bottling limited, located in Hayatabad
Industrial area, KPK. The core aim of almost every organization is to reduce cost and bring
efficiency in their supply chain. Northern Bottling Company wants the same. Northern Bottling
Limited perform procurement, manufacturing and distribution of products. They have local and
international suppliers, state of the art production plant and a fleet of 250 vehicles to cater the
demand of their customers. The customers in this case are distributors since they only deliver
products to their distributors and distributors then further deliver them retailers, hotels and
restaurants.
After carefully analyzing the data collected and reviewing all the interviews conducted, we
identified some problems in the processes. By solving these problems cost can be reduced and
company can operate in a productive way. The major problem is in the logistic department. The
distribution network is spread all across KPK province. It needs optimization along with proper
utilization of vehicle capacity and appropriate number of vehicles for the products distribution.
Plant is located in Hayatabad along with one warehouse located near it and other is located in
Kahuta Islamabad. The products are moved in pallets from plant to warehouse and from warehouse
to distributors. NBL has divided their KPK region in 4 sections: South, Central, Base and North.
Each section has different number of distributors and hence generate different sales values.
As demand is different every month so we have kept the monthly data in account and applied the
multi period linear programming method by keeping time period of 12 months. The data collected
and researched on is of the year 2019.
The results clearly shows that the company is using more vehicles then required and they have to
change some practices to make their logistics department more efficient and deliver in timely
manner. The finding along with recommendation are mentioned in the project for further analysis
and for the use by similar industries to solve their logistics problems, lower costs, and gain
completive advantage.
