Course Project: Submit for Grading

WALMART Analyze Phase INC

Chellyn Jones

Southern New Hampshire University

Analyze phase: Walmart Inc.

The selected company from the previous milestones is Walmart Inc. and the business problem which is facing the organization is inventory management where the organization finds itself in situations where some of the stores do not have sufficient stocks for some items which has led to the organization sales going down. To understand the problem a cause and effect analysis would be very helpful. As seen in the cause and effects diagram there are various factors which are the cause of poor inventory management. One of them is the personnel where the employees do not check the shelves for the stock levels and communicate with the management on ordering more.

Also, the personnel lack inventory management skills. The management causes the issue as they do not plan production properly, do not communicate well with suppliers for more stocks and have no provision for safety stocks. The suppliers are also to blame in the organization and this is because some of them have late deliveries and do not communicate when they run out of some stocks so that the company can look for alternative suppliers (Sales et al., 2020). The organization lacks up to date technology and systems which help in the management of the inventories. There are many other factors apart from the key factors which influence the inventory management and one of them is increased demand. The company is a competitive company which has shifts in demand and when the demand goes up than it was expected to rise then it finds itself running out of stocks of some of the products which are sold by the company (Nemtajela & Mbohwa, 2017). There is also increased competition in the industry due to set up of new retail stores everywhere and hence it becomes even hard for the company to predict the demand for their products.

Cause and Effect (“Fishbone”) Diagram

Walmart Anayzephase

Written 6/05

Revised 6/06

Other factors

Suppliers

Poor inventory management

Lack of up to date systems.

Inadequate software

Increased competition

Unpredictable demand

Inadequate forecatsing

Late deliveries

Running out of some products

Not keeping safety stocks

Poor communication

Lack of expertise

Leaving some shelves unstocked

Not checking stock levels frequently

Poor production planning

Poor communication with the company

Use of manual inventory tracking.

Technology

Management

Personnel

References

Nemtajela, N., & Mbohwa, C. (2017). Relationship between inventory management and uncertain demand for fast moving consumer

goods organisations. Procedia Manufacturing, 8, 699-706.

Sales, A. C. M., Guimarães, L. G. D. A., Veiga, A. R., El-Aouar, W. A., & Pereira, G. R. (2020). Risk assessment model in inventory

management using the AHP method. Gestão & Produção, 27.