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    Supply Chain: Potato Chips

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    1. Choose a consumer product for potato chips

    2. Choose a company that produces this product in the USA (materials may come from abroad). You will research this product, company and the industry and the related Supply Chain.

    You can go to several websites to find out how the product is made and what the corresponding materials are that are needed to produce it:

    www.madehow.com, and http://en.wikipedia.org/wiki/Main_Page are two possible websites. There are others if you search for them.

    Once you have chosen a product, you can search for a company that produces this product. Then you can research this company and the specific brand. Search the company's website. If it is a publicly held company you can find its 10k report for good information. And also search ProQuest for articles about this company.
    What is the size of the market for this general product, e.g. how many of these are sold or the total sales of these per year at the retail level?

    What is the brand of the product and the company you are focusing on and what is its market share for this product? What are the locations of the company in the US?

    3. Then research the competition for this product
    What are 3 - 5 competitors of this company and their market share for their brands?

    4. Now research the supply chain:
    Upstream Supply Chain. What are the key supplies and materials needed to produce this product? Include not only the materials that go into the product, but also any packaging that is needed. Identify as many of the actual supplier companies as you can and where they are located in the U.S.

    Downstream Supply Chain. What are the customers of this company/industry? Do they sell to distributors, wholesalers, retailers? Identify as many customers as you can and where they are located in the U.S.
    Generate a diagram of this Supply Chain including the specific company/industry and showing the suppliers and customers.

    Should include: major locations of the company. Identify key competitors in the industry. Identify key components, materials and packaging needed to produce this product. Identify key upstream and downstream aspects of the supply chain and locations of suppliers and customers. Discuss this supply chain. Generate a diagram of the SC.
    • Background: review and discuss the product, company, and industry
    • Diagram: Include a diagram of the Supply Chain
    • Industry Competitors: Identify the competitors to the target company and the competing brands.
    • Supply Chain Discussion: Discuss key upstream (supplies/suppliers) and downstream (customers) aspects of the SC and locations of each.
    • Clarity and Organization: The paper should be well organized and clearly discuss the various topics and issues in depth and breadth.
    • Use of references and citations: at least four (4) proper references should be used correctly, cited in the text, and listed in the references using an appropriate style; It is not necessary to use APA format, but it is suggested that this format be used or another format similar.
    • Length: The paper should be three to four pages.

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    Solution Preview

    See the attached file.

    Overview: The Potato Chip Industry

    Potato chips are a popular snack in the U.S. and abroad. In 2009, the U.S. spent $7.1 billion on
    potato chips (Raloff, 2010). The sales of combined snacks (potato chips, corn chips, and related
    products totaled over $14 billion in 2012. The sale of potato chips alone accounts for a significant
    proportion of snack sales in the U.S., even higher than the sales of cookies, crackers, and donuts. Only
    the sales of beer and soda surpass the sales of potato chips in the U.S. Raw materials required to
    produce and package the product include potatoes, salt, vegetable or canola oil, plastic for bags, and
    paper for boxes that contain cases for shipment and distribution. Additional resources include machines
    for production and processing, trucks and drivers for distribution manpower to ensure the correct
    operations of facilities, food and quality inspectors, marketing staff, research and development staff,
    and executives to make company wide decisions.

    History of Shearer's Potato Chips
    Shearer's produces potato chips, along with a variety of other bagged snacks. The company,
    located in Brewster, Ohio, began operations of producing potato chips in a small rented facility in
    Canton, Ohio, in the 1950's. The Shearer family originally began their business as a family-owned
    and operated neighborhood meat market. The company grew and moved to the Brewster location
    in 1983. The mission of the company is to produce great products that consumers will desire, that
    represent high quality. Shearer's potato chips are kettle cooked. Due to high product demand, the
    company ...

    Solution Summary

    The solution discusses the supply chain for potato chips.