question archive 1)Problem statement (Walmart Inc

1)Problem statement (Walmart Inc

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1)Problem statement (Walmart Inc.)

Chellyn Jones

Southern New Hampshire University










Milestone 1: Problem Statement

Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets selling a variety of goods. The organization is one of the largest retail organization in the country and makes huge sales and profits. Despite the organization performing well financially it has inventory management challenges. According to the management Walmart stores do not restock products as fast as required for optimal operations. Also, the stores have had situations where big quantities of products went into wastage and this resulted into huge losses for the business. The messed inventory management has caused a lot of challenges in the stores where customers have to spend long periods of time trying to locate some products in the shelves.

The inventory management issue can be linked to the messy storage spaces in some of the stores and also inventory excess. The stores need to know when to order to avoid having excess stocks in the shelves at any given time. The stores have excess stocks than needed which means that some of the stocks end up getting bad especially the highly perishable goods sold in the stores (Tan et al., 2018). The organization needs an inventory system which ensures that the stores have the optimal stock levels so that they do not run out of stock and do not have lots of wastage.

Another issue with the inventory management is where some products take too long to restock when they run out. Customers and employees have complained that Walmart leaves some segments in some aisles empty for far too long forcing customers to walk away disappointed when they cannot find the products they want (Pandey et al., 2021). The business needs to have a tracking software that is effective at determining what products need to be restocked to avoid such issues.



Walmart is experiencing one very common challenge that can be referred to as volatility in the supply chain. Re-setting the merchandise displays is a challenge and even a bigger issue considering the customer preferences and tastes are dynamic and changing. It is hard for the organization to determine what customers would demand more in a months’ time. The items that the customers would demand might be totally different from what the customers want now and that means the shifts in tastes and preferences could change resulting into lots of wastage.

Inventory management can be referred to as the heart of the supply chain management as it helps ensure that there is a smooth flow of goods in the organization. The organization needs to have an inventory management system that ensures that the stores are organized. This will help reduce the time taken by the shoppers to shop and also the time taken by the management and employees to help the customers locate some products (Lin, 2019). Convenience is a very important thing to customers and it will help encourage repeat purchases where customers come back to the Walmart stores over and over again to enjoy the good services.

The inventory management challenge faced by Walmart has resulted into the increase in the operating costs of the business. The organization can benefit so much from a good inventory management system. A good system will ensure that the business reduces the amounts of losses which result from the expiration of stocks and the lack of some products in the shelves. A good inventory management will ensure that the stocks are replenished just in time. It is important for the organization to have an inventory management system that is effective and one that enhances efficiency in the organization.


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