Not Found (#404) - StudentShare. https://studentshare.org/management/1771715-inventory-policy
Not Found (#404) - StudentShare. https://studentshare.org/management/1771715-inventory-policy.
The paper "Inventory Policy of Wal-Mart" is a great example of a case study on management. Wal-Mart seeks to provide its clientele with products at reduced prices. This means that the entity has to reduce its cost. Thus, enabling the entity to provide its consumers with merchandise at lower prices and maintain its profitability margin since the entity is profit-motivated. Wal-Mart stores replicate the inventory policy provided by central management. This has ensured consistency in the operations of the entity. Wal-Mart is the top retailing body internationally. Consequently, this writes up will refer to one of its stores in California. Wal-Mart sells diverse goods. Therefore, the entity’s inventory policy varies depending on the nature of the merchandise, accessibility of warehouses and the accord with the supplier (SAS Publishing, 2006).
Wal-Mart supercenter 7011 Main Street is the reference retail store that this write-up will utilize to tackle inventory policy. This store sells an enormous quantity of goods. From their data, it is tricky to determine the various stock levels. However, what is evident is that the purchasing rate and the nature of commodity have central implications on the inventory policy of Wal-Mart supercentre. For a commodity that is in demand, the store maintains a relatively higher stock level. This prevents rampant incidences of stock-out that would have negative implications on Wal-Mart supercentre. If the commodity is perishable, the entity will take a cautious approach in making purchases since the entity seeks to eliminate any losses that result from purchases. This means that such a product will have a low stock level. Additionally, such a commodity would have minimal safety stock. Conversely, commodities that are first moving have considerably greater safety stocks. This eliminates any chances of stock-out (Wu, 2008).