In filling W'Up in Uttar Pradesh, India, Rajat Mehra, director of supply chain management, supply chain pondered W'Up plant performance over the peak summer period, which just ended. W'Up bottling, which was a subsidiary of Hindustan Coca-Cola Beverages Private Limited (HCCBPL), made by Coca-Cola and other soft drinks for several regions in the market of Uttar Pradesh. While stocks have gone down and fill rates have improved compared to the previous peak sales season, Mehra was looking for ways to improve system performance. Mehra had heard about the concept of vendor Managed Inventory (VMI), which is gaining popularity in the West. Implementation of LCA involves a departure from the current situation, in which independent distributors placed orders for the completion of the plant W'Up, to one in which the distributors and not report their inventory levels directly W'Up supply chain management group. Managers in this group will then decide how much stock to send to each distributor. Mehra and his team wondered how this idea can be applied to a highly fragmented supply chain HCCBPL, covering areas where the IT infrastructure was rare or nonexistent. See also In case (UVA-OM-1352 "Hide
by Kamalini Ramdas Source: Darden School of Business 11 pages. Publication Date: July 30, 2008. Prod. #: UV1285-PDF-ENG