Using Sampling and Statistics to Analyze MillerCoors Distribution Network Performance
MillerCoors is a U.S. manufacturer of beer brands including Miller, Coors, Molson, and Blue Moon, operating 10 breweries with a network of over 500 distributors servicing over 700,000 retail accounts, including supermarkets, bars, and restaurants. All U.S. breweries are required by law (emanating from the repeal of prohibition) to use a three-tier distribution system with a wholesaler/distributor layer between the brewery and the retail customer. An advantage of this system is that the distributor has direct local contact with retailers, which can help them develop a locally engaged market strategy. However, the distribution network must also be efficient and cost effective in order to deliver the brewer’s products to retailers fresh, in a timely manner, and damage free.
MillerCoors collects data from its distributors for seven attributes, weighted according to business considerations—expired products, processes, product damage, in-house audits, incorrect product staging, quality certifications, and consumer complaints. Data are collected using facility inspections and retail account audits; the latter collected by visiting a sample of 15, 20, or 25 random retailers based on the size of the distributor. This results in over 6000 of the brewer’s national retail accounts being audited each year. These data are used to develop a performance ranking of distributors based on a scaled score of each of the seven quality attributes (computed by using the z value for a
Identify another company with a national distribution network and discuss how it might use a similar sampling process to evaluate distributor’s performance.
To determine: Difference between attribute control charts and variable control charts.
Introduction: Control charts are referred as graphs which presents the placing of sample. It determines whether the sample is in its control limit or not. It is established in order to find the control limits of each sample.
Explanation of Solution
Following points highlight the difference between attribute control chart and variable control chart.
- Attribute control chart is used for discrete values such as more or less, good or bad, and so on, while variable control chart is used for the variables which are continuous in nature.
- In attribute control chart, sample contains non-measurable values such as good or bad, and so on, while in variable chart, variables could be measured such as weight, heights, and so on.
- For attribute control chart, two types of charts are used namely, p-chart and c-chart; whereas, for variable chart, mean chart and range chart are used.
- Attribute control chart accounts for proportion of defects and then number of defects in a sample; whereas, variable control chart determines whether the sample is in statistical control limits or not.
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