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Description: Supply chain problems are starting to get personal for some snack lovers. Frito-Lay has apparently stopped shipping the treats consumers love, like Doritos and Lays brand potato chips, to Loblaw. Its all due to the fact that Loblaw has been refusing Frito-Lay’s requests to pump up its prices to cover its rising costs in this time of growing inflation. Given that Loblaw controls 35 percent of the food retail market, no wonder some are calling Frito-Lay’s move the “nuclear option.”

Date:  February 18, 2022

Source:  globalnews.ca

 Link: https://financialpost.com/news/retail-marketing/potato-chip-giant-frito-lay-cuts-off-loblaw-in-dispute-over-price-hikes

Discussion points:

1) Has the Frito-Lay’s shortage impacted snacking on your campus?

2) Imagine yourself as an accountant at Frito-Lay. What advice would you provide senior management as it pursues this “nuclear option?”

3) Page 5-5 of Wiley’s Financial Accounting: Tools for Business Decision-Making tells us a reason Loblaw uses a perpetual inventory system. What is the explanation given?

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