PepsiCo

https://www.sec.gov/ix?doc=/Archives/edgar/data/77476/000007747621000007/pep-20201226.htm

Using the 10k or annual report of PepsiCo answer the following questions

A.Summarize the organization, including the type of business they are, the major markets they operate in, the type of goods they sell (major product families) and the general size of the organization (possibly in total sales, number of locations, number of staff, etc.).

B. Calculate ROA, ITR and FDS for organization (show all necessary information from the financials statements).Assumptions are required to perform these calculationsAssume that the value of the assets (both inventory and total assets) on the balance sheet remains constant throughout the year. Assume that the inventory value on the balance sheet is listed at COGS. Also, your organization may or may not list sales at the COGS - in this case to calculate the turn ratio and ROA based on net sales or total revenue number. For FDS calculations, if they list sales at COGS great! (use that) if not, use net sales or total revenue divided by 365 to forecast daily demand.

C.Based on your calculations in Part B above (ITR, ROA, FDS), how valuable or critical do you consider inventory management to this company? This critical analysis should demonstrate a connection between your understanding of the metrics of managing inventory and the overall success of the firm.

D.For the company that you have chosen, describe what you believe to be the major form of inventory that they offer and what function this performs. The financial statementsmay or may not give you insight or a breakdown of the forms and functions of inventory. If they do not, make reasonable assumptions based on your experience with the company (operations and products).

E. For one of the major family of products, describe what techniques you would consider using to forecast demand. You again will need to make some assumptions on what demand looks like for the product family (please do not research actual demand).Then offer what forecasting methods are likely to be beneficial based on your understanding of qualitative and quantitative forecasting techniques.

F.For the forecasting methods that you've proposed above in Part E, how would you evaluate the forecasts accuracy over time?