History

Cheetos were invented in 1948 by Fritos creator Charles Elmer Doolin, who cooked early test
batches in the Frito Company's Dallas, Texas-based research and development kitchen. The
cheese-flavored snack sold quickly, but Doolin did not have the production or distribution
capacity to support a nationwide launch. This led Doolin to partner with potato chip businessman
Herman W. Lay for marketing and distribution, and Cheetos were introduced nationally in the
U.S. in 1948 along with a potato product called Fritatos. The success of Cheetos prompted
Doolin and Lay to merge their two companies in 1961, forming Frito-Lay Inc. At the time,
Cheetos was one of four large snack food brands produced by the company, which had annual
revenues of $127 million. Frito-Lay merged with the Pepsi-Cola Company to form PepsiCo in
1965, prompting further distribution of Cheetos outside of North America.
While Cheetos was the first snack food of its kind, competing products in the snack food
category have since emergedincluding Utz Cheese Curls, Herr's Cheese Curls and Wise Cheez
Doodles. Most of the competing cheese-flavored snacks are distributed in specific regions of the
U.S., and as of 2010 Cheetos remains as the top-selling cheese puff in America.
As of 2011, Cheetos are produced, marketed and distributed under three different PepsiCo
operating divisions: PepsiCo Americas Foods (which includes Frito-Lay in the United States and
Canada, Sabritas in Mexico and Latin Americas Foods in Brazil, Colombia, Argentina,
Venezuela and Peru.), PepsiCo Europe and PepsiCo Asia, Middle East & Africa. PepsiCo granted
also a license to the Strauss-Elite company to distribute the Cheetos snack. In 2010, worldwide
annual sales of Cheetos totaled approximately $4 billion, making it the 11th-largest PepsiCo
brand.

CH#01 Understanding the Supply Chain

SUPPLY CHAIN STAGES
A typical supply chain may involve a variety of stages: Customers Retailers
Wholesales/distributors Manufacturers/ Plants Component/raw material suppliers.

Decision phase in supply chain

In decision phase Cheetos management collect the require information from different source and
resource then makes the planning with views of forecasting then make the operations to
implementation on planning.

Kind of supply chain strategy

Pepsi Company used the cost efficiency strategy to full fill the customer mind.

 Process views of supply chain

Pepsi always used the pull view process of supply chain.

CH#02 Supply Chain Performance; Achieving Strategic Fit and Scope

Cycle inventory Pepsi (Cheetos) Company and its distributors always have the cycle
inventory to use between order placements to order fulfillment.
Seasonal inventory Cheetos has full season so they produce them full year.
CH#04 Designing Distribution Networks and Applications to Online Sales
Distribution network design Pepsi make the strong distribution network to
distribution his product involves all the supply chain parties, There are so many factors
which is influence the tonally supply chain like response time, product variety, customer
need.

CH#07 Demand Forecasting In Supply Chain

Pepsi Company makes the forecasting on the anticipation of sale that is main role of forecasting.
These main components of forecasting company past demand and planned price discounts on the
base company make the forecasting. Company used the quantitative method for forecasting on
the base of human judgment and also make the on the base of past demand and basic demand.