MGT330

1. Course Title: Introduction to Operations
Management
C ourse C ode: M G T330
Section: 05
Semester year: Spring 2021
D ate of Submission: 19th A pril 2021
C A S E S T U D Y O N
I N V E N T O R Y
M A N A G E M E N T O F
W A L M A R T

2. TODAY’S SPEAKERS ARE -
Md. Hasibur Rahman-1820385
Sumiya Binte Belal -1920574 Bushra Haque -1930306
Md. Azmol Hossain Khan
-18100447
Mahbuba Arshia-1920574
Saikat Barua-1921683
Atiya Binta Hossain-1930796

3. World’s largest retailer company originated in the US
220 million customers every week from 24 countries.
Groceries, healthcare & Insurance, Technology – all available
800+ Brands, Net Worth: 328 Billion USD
Low price, masterclass quality.

4. Largest grocery chain in Bangladesh
40,000 customers every day.
Groceries, fashion product, home accessories & appliances
Produces their own food products
In 2016, Shwapno was recognized as the Best Retail Brand in the country

5. Walmart provides services of versatile needs worldwide where
Shwapno is mostly known for its fresh food and grocery chain.
Walmart is a name of trust whereas Shwapno is yet to prove
their service to people.
Walmart and Shwapno are similar companies in terms of retail
marketing.

6. C A S E S T U D Y
• This case study states the importance of successful
inventory management for a firm.
• It discusses the various successful methods of
inventory management which is used by Walmart.
Some of the successful methods of Walmart are:
1. Walmart's vendor-Managed Inventory Model
• It minimizes delays within the movement of
inventory across the supply chain.
• It minimizes the cost of inventory management
activity.
2. Just-in-time cross docking in Walmart's inventory
management
• It minimizes the size of inventory.

7. Walmart's measures of
inventory performance:
a. Inventory turnover
b. Stock out rate.
c. Inventory size
Managing inventory across Walmart's
Supply chain: ABC analysis-
• A category- finished goods sold at its
stores and operations equipment.
• B category - maintenance equipment and
office furniture.
• C category- janitorial supplies and office
supplies like paper .

8. P R O B L E M S A N D I S S U E S
1.The stock-out rate is the frequency at which Walmart’s inventory becomes
inadequate in satisfying demand.
2.Out of stock merchandise
3.Inventory growing rate was higher than sales rate

9. P R O B L E M S A N D I S S U E S
1. SHWAPNO uses EPS software for recording information.
2. Purchases perishable products from a local market at a wholesale
price.
3. Stores having small inventory.
4. Shwapno’s current purchase model is not cost effective.

10. Walmart utilizes various strategies to deal with its stock.
In the nick of time stock is the application of the in the just of time (JIT)
technique to stock administration.
Includes measures and exercises for the operational target of limiting
stockpiling and related expenses.
At Walmart, the just in-time stock technique is applied as cross-docking.
In cross-docking, providers' trucks and the organization's trucks meet at
the organization's stockrooms or product conveyance focuses.
R E C O M M E N D A T I O N

11. SHWAPNO uses EPS software for recording information.
Usually, Shwapno purchases perishable products from a local market at
a wholesale price which creates some drawbacks regarding inventory
management.
Stores having small inventory often face product shortage as no fixed
reordering time is given.
shwapno’s current purchase model is not cost effective regarding total
annual cost of inventory.
S H W A P N O ’ S
I N V E N T O R Y

12. Methods that can shwapnoadaptfromWalmart:
1.Walmart’s Vendor-Managed Inventory Model: through this
model shawapno’s suppliers can access data from the
company’s information system.
 Using this model can help shwapno to minimize the costs of
inventory management activities.
 Suppliers can directly access the system to know current
data about inventory of goods at shwapno.

13. 1. Completed Goods Inventory
2. Transit Inventory
3. Buffer Inventory
4. Anticipation Inventory
Types and Roles of Inventory
at Walmart Inc.

14. Why Safety Stock is Important
It helps the company in meeting demand at
crucial time
It also boost the storage efficiency
Many company now just in time inventory
system where company order small amount of
product or materials at regular intervals

15. T h e I m p a c t o f H i g h & L o w S a f e t y
S t o c k
High Safety Stock
Manufacture Retailer
 High safety stock distorts true
store demand
 High costs of maintaining
inventory
 Excessive capital tied up in
inventory
 Operation cost increases as
management of excess stock is
required
 High safety stock distorts true
shopper demand thus
decreases
Low Safety Stock
 Low safety stock reduces the
impact of promotions
 Loss of brand loyalty and
images
 Out of stock encourages
competitors sales
 Increases possibility to stock
out
 Loss of revenue due to stock
outs
 Decreased customer
satisfaction
 Competitor gains

16. F I N D I N G A N D A N A L Y S I S
• Walmart uses the vendor managed inventory model. The vendor
management model gives Walmart the advantage as the suppliers
can access data from the company’s information systems. It’s easy
to understand that the main thing Shwapno can adapt from
Walmart is the method of inventory management.
• The suppliers can access data from the company’s
information systems
• There is no extra cost of hiring new people.
• There are specific time gaps between the shipments
• No overflows of products
• or no insufficiency of space
• Shwapno Can also remove the EPS software
• EPS software takes more than an hour to record information
• Shwapno to catch up with the fluctuation of demand in the
market

17. CONCLUSION
In summary, Walmart is a superb example of how retail
companies can reduce in-dusty-specific inefficiencies by
adopting new ideas and dealing closely with suppliers.

18. THANK YOU