INVENTORY
Inventory is generally classified as Independent demand and dependent demand.
Independent demand
An inventory of an item that its demand is not dependent upon the demand of another item, these are finished goods e.g. a car, which orders come from external customers or manufactured for stock or sale. These inventories base on confirmed customer orders, forecasts, estimates and past historical data.
Dependent demand
An inventory of an item that depends on another item e.g. raw materials and components. These inventories are dependent upon the demand for finished goods.
Walmart has had great success and grown into the leading retailer in the world because the company has been innovating competitive inventory management methods and strategies making it, its core contributing …show more content…
On the other hand, Operations control involves organizing and employing commands to accomplish the mission. Thus Operations Planning and Control are based on forecasts of future demand for the output of the system.
Planning and Scheduling
Walmart’s Operations Planning ensures the ability to continue to offer Everyday Low Prices, which is its main strategic goal, while maintaining the growth and success of the company. Thus the planning and scheduling are;
- Strategic Vendor Partnership, Walmart purchases its products in large quantities which gives it a strong supply chain team. This in turn guarantees low prices thus minimizing the cost of goods sold.
- Fewer links in supply, when Walmart decided to directly purchase its products from the manufactures it distorted the several supply chains and thus could give discounts and large long term buying agreements to the vendors thus strengthening the partnerships. This brought about the Vendor Managed Inventory that shifted the responsibility of the products to the
Inventory is generally classified as Independent demand and dependent demand.
Independent demand
An inventory of an item that its demand is not dependent upon the demand of another item, these are finished goods e.g. a car, which orders come from external customers or manufactured for stock or sale. These inventories base on confirmed customer orders, forecasts, estimates and past historical data.
Dependent demand
An inventory of an item that depends on another item e.g. raw materials and components. These inventories are dependent upon the demand for finished goods.
Walmart has had great success and grown into the leading retailer in the world because the company has been innovating competitive inventory management methods and strategies making it, its core contributing …show more content…
On the other hand, Operations control involves organizing and employing commands to accomplish the mission. Thus Operations Planning and Control are based on forecasts of future demand for the output of the system.
Planning and Scheduling
Walmart’s Operations Planning ensures the ability to continue to offer Everyday Low Prices, which is its main strategic goal, while maintaining the growth and success of the company. Thus the planning and scheduling are;
- Strategic Vendor Partnership, Walmart purchases its products in large quantities which gives it a strong supply chain team. This in turn guarantees low prices thus minimizing the cost of goods sold.
- Fewer links in supply, when Walmart decided to directly purchase its products from the manufactures it distorted the several supply chains and thus could give discounts and large long term buying agreements to the vendors thus strengthening the partnerships. This brought about the Vendor Managed Inventory that shifted the responsibility of the products to the