Read the following case study, based Walmart and answer the essay question that follows, not all the answers can be found in the case study, you may be required to conduct additional research. Walmart’s Inventory Management Walmart Inc.’s inventory management is one of the biggest contributors to the success of the multinational retail business. Considering the mammoth size of the company, effective and efficient inventory management is of critical importance in operational effectiveness. Walmart is known for cutting-edge technological applications for its inventory management aspect of operations. The company has perfected the art of innovating its inventory management methods and strategies. Thus, Walmart is an example of the benefits of advanced technology and innovation in optimizing inventory management performance. While there are a variety of other factors contributing to the success of this business, advanced inventory management is one of the core organizational capabilities that enable Walmart’s leadership in the global retail industry. Such leadership establishes the company’s competitive advantages relative to firms like Target and Amazon in the retail market. Also, the competitive effects of the digital content distribution operations of companies like Apple, Google, and Microsoft are dampened partly through Walmart’s high inventory management efficiencies, along with related strategies and product development approaches. Walmart’s inventory management is a key success factor in the firm’s ability to grow to its current industry position as the leading retailer in the world. The company’s strategies for various business areas are linked to inventory management in terms of how strategic approaches support or exploit benefits brought through innovations in inventory activities. In this regard, such strategies applied in inventory management directly relate to Walmart’s operations management and productivity strategies. Walmart’s Vendor-Managed Inventory Model Walmart’s success in managing its inventory is partly due to the effective implementation of the vendor-managed inventory model. In this model, suppliers access data from the company’s information systems, such as data on current inventory levels and the rate at which certain goods are sold. Suppliers decide when to send additional goods to Walmart, while the company monitors and controls the actual transit of goods from warehouses to the stores. This strategy shifts some of the inventory control activities onto the side of the suppliers. Types and Roles of Inventory at Walmart Inc. Walmart uses many types of inventory, each with a corresponding set of management approaches, strategies, and tactics. Each type fulfills a certain role in the retail company’s inventory and supply chain. The following types of inventory are some of the most notable in Walmart’s practices: Finished Goods Inventory Transit Inventory Buffer Inventory Anticipation Inventory Reading the above, it becomes clear that good inventory management and forecasting can deliver supply chain success for and could ultimately lead to profitability and growth. you are required to evaluate the importance of forecasting for Walmart. Answer the following questions Overview of the importance of /3 forecasting The importance of forecasting to Walmart. Examine if a combination of both qualitative and quantitative forecasting may be best suited. At least 2 justification points stating if a combination approach is best Argue the relevance of cloud-based forecasting for Walmart. Application of the cloud-based forecasting of /5 forecasting to Walmart
Read the following case study, based Walmart and answer the essay question that follows, not all the answers can be found in the case study, you may be required to conduct additional research.
Walmart’s Inventory Management
Walmart Inc.’s inventory management is one of the biggest contributors to the success of the multinational retail business. Considering the mammoth size of the company, effective and efficient inventory management is of critical importance in operational effectiveness. Walmart is known for cutting-edge technological applications for its inventory management aspect of operations. The company has perfected the art of innovating its inventory management methods and strategies. Thus, Walmart is an example of the benefits of advanced technology and innovation in optimizing inventory management performance. While there are a variety of other factors contributing to the success of this business, advanced inventory management is one of the core organizational capabilities that enable Walmart’s leadership in the global retail industry. Such leadership establishes the company’s competitive advantages relative to firms like Target and Amazon in the retail market. Also, the competitive effects of the digital content distribution operations of companies like Apple, Google, and Microsoft are dampened partly through Walmart’s high inventory management efficiencies, along with related strategies and product development approaches.
Walmart’s inventory management is a key success factor in the firm’s ability to grow to its current industry position as the leading retailer in the world. The company’s strategies for various business areas are linked to inventory management in terms of how strategic approaches support or exploit benefits brought through innovations in inventory activities. In this regard, such strategies applied in inventory management directly relate to Walmart’s operations management and productivity strategies.
Walmart’s Vendor-Managed Inventory Model
Walmart’s success in managing its inventory is partly due to the effective implementation of the vendor-managed inventory model. In this model, suppliers access data from the company’s information systems, such as data on current inventory levels and the rate at which certain goods are sold. Suppliers decide when to send additional goods to Walmart, while the company monitors and controls the actual transit of goods from warehouses to the stores. This strategy shifts some of the inventory control activities onto the side of the suppliers.
Types and Roles of Inventory at Walmart Inc.
Walmart uses many types of inventory, each with a corresponding set of management approaches, strategies, and tactics. Each type fulfills a certain role in the retail company’s inventory and supply chain. The following types of inventory are some of the most notable in Walmart’s practices:
Finished Goods Inventory
Transit Inventory
Buffer Inventory
Anticipation Inventory
Reading the above, it becomes clear that good inventory management and
Answer the following questions
Overview of the importance of /3 forecasting
The importance of forecasting to Walmart.
Examine if a combination of both qualitative and quantitative forecasting may be best
suited. At least 2 justification points stating if a combination approach is best
Argue the relevance of cloud-based forecasting for Walmart.
Application of the cloud-based forecasting of /5 forecasting to Walmart
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