Question

The effects on operation and supply chain that Coca Cola company facing when there is carbon dioxide shortage. please elaborate.

Answer 1

Carbon dioxide is a gas which is used to add bubbles in the beverages which the Coca Cola is dealing with and now when there is a shortage of Carbon dioxide in UK and Europe, it has had a huge effect on the operations and has in past sent shivers to the vibrant supply chain of Coca Cola.

Coca-Cola, when faced with the shortage of Carbon dioxide, had to stop a number of production lines and has made Coca Cola question its choices of what to do when faced with such a problem. The scarcity of CO2 has put a light on the invisible ubiquity of a gas which is extensively used in Coca Cola beverages. In its solid form which then gets translated into dry ice, Carbon dioxide is used to cool and freeze foods.  The scarcity of Carbon dioxide is because of the unprecedented closure of the industries, which are responsible for producing byproduct of the fertilizer industry.

The shortage of CO2 was felt across but the worst hit was the UK and in 2018 Coca Cola suspended its production lines and it impacted the operations of Coca Cola massively but the disruption was by and large avoided. But if there is a shortage of something on which the whole industry is dependent on, it is already sending shivers and if it gets aggravated, it can cause disruption and will not only affect production but the whole value and supply chain.

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