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Inventory Problem Case Study of Walmart

University: Australian National University

  • Unit No: 11
  • Level: High school
  • Pages: 5 / Words 1138
  • Paper Type: Case Study
  • Course Code:
  • Downloads: 724
Question :

Inventory issues are faced by company in terms of deciding suitable demand every period of time for their product. Here, problem can be determined with the help of mathematical technique regarding the optimal control, network optimisation and dynamic programming. In relation with this, the inventory management of Walmart is the biggest contributors regarding the success of multinational retail business. Walmart is also famous for cutting edge regarding the technological applications for the effective management of inventory.

  • What is the impact over Walmart regarding the messy storage spaces?
  • How Walmart can save time regarding inventory management?
Answer :
Organization Selected : Walmart

Challenges face by company:

Besides all this, company tends to face issues in inventory management as even the giants also tends to brought down after the mammoth fall in 2013 when company face fall in $3 billion which is because of excess goods surging past sales.

Why Inventory Problems Are Just a Symptom, 2013

Illustration 1: Why Inventory Problems Are Just a Symptom, 2013

  • For this, suitable causes tends to get occur because of damaging the inventory excess and messy storage spaces and also have effective inventory software in order to keep goods at the effective level. As a result, thousands of hours were wasted by the managers to keep track and find products effectively.
  • Along with this, the size of Walmart also tends to receive suitable kind of financial blow from the shortage of inventory control by imagining the kind of damage for the small and medium businesses.
  • Moreover, without an effective and healthy inventory management system, the tight budget of company can also get strained in few seconds as if employees tends to waste their hours by looking for suitable commodities.

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Impact of challenges:

For this, it is quite easy to imagine that messy inventory tends to develop negative image of company by which customers gets frustrated when they cannot find particular products and also tends to waste time spent in order to trying to keep things on track without damaging the image of Walmart and lost revenue.

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Measures to overcome from challenges:

Solution 1:

Moreover, after ineffective management of inventory something needs to be change as walmart develop labs and also launch My Productivity app that tends to provide every member effective access of management team to the real time data through their smartphones. Along with this, walmart also undertake no more logging into their separate system in order to gain access to the sales, warehouse and replenishment and other by which effective data is required to keep the business running effectively and efficiently. Moreover, to overcome the issues suitable app tends to permit that managers need to restock items considering the suitable access of sales, review feedback from customers as never leaving the location. Walmart also leads to upgrade their real time supplier data with the help of supplier portal allowing retail coverage app by which suppliers tends to have effective overviews and leads to eliminate costly inventory excess.

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Solution 2:

Moreover, the new system of walmart leads to develop better ways for company in order to manage their inventory without any problem by considering their attempt of 2003 in which company tends to opt the radio frequency identification technology. In regard of this, the objective of app is to offer their managers a clear and broad overview for the various streams that leads to impact their business. In terms of managing the overall inventory, the managers tends to play an important role without leave the floor of sales and after that the idea of shopping experience of customer will also be redefined for the better experience in an effective manner.

For this, by considering the suitable problems company tends to gain effective lessons in few parts like no organisation tends to have expense control over their way for the long term success of business as no matter what the short term fix for the company tends to effectively figure out what is wrong in the functioning and working. Moreover, employees are the assets as they are not just expense line items on the profit and loss as Walmart need to heard their workforce and leads to change their course with time.

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Solution 3:

In relation with this, company need to get the sense of technology by opting effective and advanced technology which is the effective process and also related with inefficient and inadequate terms regarding the bigger issues which is needed for more employees in their store. For this, walmart need to focus on their customers and leverage their workforce in order to create successful business. Considering the suitable factors and challenges, walmart tends to manage their success in their inventory because of the effective execution of vendor managed inventory model. In relation with this, suppliers also tends to decide for the effective and additional goods to the walmart by which organisation tends to monitor the suitable control of the actual transit of products from the warehouse to their stores. In regard of this, the suitable strategy tends to shift some of the inventory control activities for the side of suppliers.


For this, to overcome from the suitable challenges, it is recommended that Walmart's vendor managed inventory is beneficial in order to minimise delay in the movement of inventory across the supply chain. The suitable benefit is accomplished as the suppliers tends to prominently access the existing data regarding the inventory of products at their stores. Furthermore, the suitable benefit also tends to impact the use of vendor managed inventory tool in order to minimise the cost for the inventory management activity.

However, for the further discussion, company tends to observe in order to forget their sustainability problems like bullying the suppliers, cutting cost by burdening workforce and many more. They also tends to show that they are concerned for their stakeholders and Walmart also need to observe in terms of making mistakes for the cultural aspects in terms of opening their business in other countries. For this, walmart also has the huge opportunity to open their own separate entity that leads to focus only logistics factors and also keep the retail store separate from it. Walmart also tends to embrace effective technology and innovated to their supply chain by prominently tracking inventory and restock inventory at the time of passing on the suitable savings to their customers.

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