Wal-Mart Inventory Management

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Wal-Mart Inventory Management
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Wal-Mart Inventory Management
Inventory management refers to the act of specifying the placement and size of stocked goods for a company. To ensure that business in various locations is coordinated, it is very important to ensure that frequent stock taking is done in order to ensure a constant supply and flow of goods and services. The major concern in inventory handling is the focus on inventory carrying costs, inventory forecasting, asset management, forecasting of future asset management price, inventory valuation, physical inventory, physical space available for inventory, inventory visibility, demand forecasting and returns and defective goods.
Wal-Mart is one of the biggest retailers in items that are produced in over 70 countries and manages an average of $32 billion in inventory. Effective Inventory management is an integral component for any business in order to ensure its success (Fishman, 2006). With numerous distribution centers, having an efficient and effective inventory management control system is a crucial factor in ensuring business success and Wal-Mart has a system application that helps in inventory management by telling store managers which products are selling and which are taking up shelf and warehouse space.
It is evident that Wal-Mart manages its inventory supply efficiently. The inventory management system in place ensures that customers always have enough of what they want and balance the organizational goal against retailers` financial needs of customers in order to offer satisfaction to them and increase on sales (Ingram, 2007). The modern inventory management systems used by the company ensure the ability to track inventory and communicate with suppliers of goods and services. The success of the company owes to the effective Management of records a...