Rene D. Lelevier
August 8, 2012
This paper will define what operations management is and how it is applied at RedBull. This paper will go over the functions of the company’s operations and how the daily goals and tasks of the chosen area of the company are met on a daily basis.
According to “Investopedia” (2012), operations management is “the administration of business practices to create the highest level of efficiency within an organization” (Investopedia, 2012). In other words, operations management is the process that the company uses to become efficient and effective to the maximum level while maintaining the best type of service possible.
RedBull is an energy drink company that established itself in the mid-80s in Austria and has become the number one energy drink beverage in the world. It is categorized as a functional drink in regards that it reaches its consumer by giving a boost to performance and well-being. While operations management is used in different sections of the company, this paper will only go over the operations management of the distribution sector of the company.
RedBull Distribution is in charge of distributing the product to stores all over the country. Each major city has a distribution warehouse to store the product. For this paper, San Diego will be the city used as the example. From this warehouse, routes throughout San Diego are grouped to better facilitate the deliveries on a daily basis. The Branch manger for the San Diego warehouse is in charge of the whole warehouse along with each worker and routes. The Branch manager is given a calculated number of cases on a monthly basis that the company expects to be hit. Using this number the branch manger delegates each route a certain number of cases on a monthly basis, depending on the stores and the sales from previous months, and...