Supply chain dynamics, the case of Frito-Lay in Latin America

We present a case study about the structural causes of the Bullwhip Effect. We based our research on a set of semi-structured interviews and built up a simulation model to analyse the impact on performance of operational policies used by supply chain managers. The case is Snacks Inc., a Latin American branch of Frito-Lay International. We discuss which policies will require further adjustments in order to fully explore the capabilities of their new Information Systems, and Advanced Planning Systems module of their current Enterprise Resource Planning structure. This paper exemplifies a new way in which the supply chain structures can be analysed to study the distortions on information and production orders, commonly called the Bullwhip Effect.