Operation Management & Supply Chain Strategies for Walmart Inc.

This report provides an analysis of Walmart Inc.'s operation management, focusing on its product life cycle and supply chain efficiency. It identifies weaknesses such as product recalls, inventory management issues during peak demand, and inadequate product descriptions. The report proposes strategies to strengthen operations, including cost minimization, improved product scouting, and reduced lead times. It also addresses primary issues impacting the supply chain, such as fast-changing markets, globalization, and quality compliance. Various quality management tools for identifying and analyzing future concerns are discussed, along with the benefits and effects of a Just-in-Time (JIT) system. The report contrasts qualitative and quantitative forecasting methods and concludes with recommendations for Walmart to enhance its operational success.

Running Head: OPERATION MANAGEMENT 1
Operation Management
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Table of Content

OPERATION MANAGEMENT 2
s
Introduction................................................................................................................................3
Weaknesses................................................................................................................................3
Strategies for strengthening operation.......................................................................................3
Primary issues impacting the supply chain................................................................................4
Tools of Quality management for the identification and analysis of future concerns...............4
Benefits of Just-in-time (JIT) system.........................................................................................5
Effect of JIT on quality..............................................................................................................5
Qualitative and Quantitative methods of forecasting.................................................................5
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
The following paper aims at analysing the efficiency of the global American
supermarket, Walmart Inc. on the basis of its product life cycle and supply chain prospects.
Effective strategies have bene formulated in this report based upon the issues and
opportunities for the firm.
Weaknesses
There are several weaknesses in the product life cycle of Walmart. There have been
cases of continuous product recalls for Walmart. The company has been suffering since a
long period of time in terms of its company image. During the periods of excessive demand,
the inventory support system has been suffering as well. The inventory management of the
company suffers vast amount of delays during events of sales, in terms of accomplishing the
customers’ demand. Walmart also suffers from issues related to providing description of
individual products during cross docking. The inventory forecasting of the firm has also
lagged behind as a lot of weakness has been seen to be pertaining at areas where information
was inadequate for the customers demand.
Strategies for strengthening operation
Walmart can adopt various strategies which can assist them in making their operations
and operational management strong in the long run. Firstly, it would need to adopt the
measure of cost minimization that responds to the financial restrictions as per the strategy of
growth. Specific strategies for improvements in product and quality scouting should be
followed by the manufacturers of Walmart. The lead time for the overall product ordering
system should be brought down to 5 days. Flexibility should be brought into the new system
which should be made adjustable enough for having a total capacity of at least 80,000 items

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and restocking and restoring of the total stock (Bjelland & Wood, 2015). The decisions of the
company are made on the basis of prioritizing the business objectives (LeCavalier, 2016).
Primary issues impacting the supply chain
One of the vital concerns that affect the supply chain of any company are the fast-
changing markets, Globalization and Quality & compliance. Due to outsourcing, the
production of the company is extended globally, and the procurement process of the company
is extended as well. The supply chain faces complications if a firm has several suppliers
located at different places. These supplier partners have to be cooperated and collaborated
with by the company. Rapidly changing markets can bring down the life cycle of a product.
There is a constant pressure on companies for keeping up with the trends and bringing new
and innovative products. This puts a lot of pressure on the supply chain. Finally, it is
mandatory for companies to meet the international regulatory standards in the manufacturing,
handling, packaging, and shipping of their products. Documents of compliance such as
licenses and permit are needed to be prepared by companies which can submerge the supply
chain. This issue can be solved by emerging capabilities such as Blockchain, Smart
Packaging, etc. Whereas the first two issues can be fixed with the help of efficient data
management and integration.
Tools of Quality management for the identification and analysis of future concerns
The quality management tools that can be used in the identification and analyzation of
future issues are Bar graphs, Pie charts, run charts, force field analysis, Flowcharts, Pareto
charts, affinity diagrams, Focus groups, Brainstorming diagrams, Histograms, Tree diagrams,
Scatter diagrams, modeling diagrams, Plan-Do-Check-Act, relations diagram, etc.

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Benefits of Just-in-time (JIT) system
The JIT system of inventory management is used for managing the stock kept in the
storage. There are several benefits of employing such a philosophy in the inventory
management of a company. Firstly, the need of warehouse for storing goods is lessened due
to a quicker stock turnaround. The goods are prevented from being obsolete or damaged
while being kept in storage due to the fast stock turnaround. As such, wastage is reduced.
Stock can be ordered as and when needed which further helps in maintaining a stable cash
flow. Finally, it helps in reducing the delay in the movement across the supply chain.
Effect of JIT on quality
Just-in-time inventory management helps in increasing the efficiency of the supply
chain management and helps the manufacturers and companies in receiving goods as and
when they are needed only for the processes. This reduces the overall inventory costs and
also helps the firms in forecasting their requirements more precisely and accurately. It always
ensures that inventory is always available, thereby diminishing the overhead expenses.
Henceforth, the customers of an enterprise are served in a better way. Such efficiency in the
inventory and supply chain management ensures the quality of the products that will finally
be delivered to the customers.
Qualitative and Quantitative methods of forecasting
Method Characteristics Strength Weakness
Qualitative They are subjective
and are based on the
judgement and
opinions of the
customers of a
product or company
(Evans & Basu,
2010). When any
sort of past
information is not
available, this
Credibility,
Predictive ability,
Flexibility,
Ambiguity.
Unexpected
occurrences, Invalid
opinions of experts,
Forecaster Bias,
Inaccurate Forecasts.

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method is
appropriate.
Quantitative They are used for
forecasting future
data as a past data
function. When
information from the
past is available, and
when it is valid for
assuming that the
past data might
continue into the
future, such method
is appropriate
(Evans & Basu,
2010).
Addresses and
respects history,
eliminates inflated
forecasts, finds
different patterns,
good for alluring
external stakeholders
(Hsu & Sandford,
2010).
Costly data, Difficult
to get the expertise
and costly to pay
them, Judgmental.

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Conclusion
Based upon the above analysis, it could be stated that Walmart can incorporate the
above mentioned extensive starties in order to improve their possibilities of future success in
its filed of operation.

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References
Bjelland, O. M., & Wood, R. C. (2015). To nurture transformational technology, build
community like Sam Walton’s. Strategy & Leadership, 43(2), 41-46.
Evans, J. R., & Basu, A. (2010). Statistics, data analysis, and decision modeling. London,
UK: Pearson.
Hsu, C. C., & Sandford, B. A. (2010). Delphi technique. Encyclopedia of research design,
344-347.
LeCavalier, J. (2016). The Rule of Logistics: Walmart and the Architecture of Fulfillment.
Minnesota, USA: University of Minnesota Press.