Inventory Management

Inventory Management

Introduction

There are a number of organizations using new and innovative management systems, and all of them hold equal importance. With the changes in economic system of the world and the recently occurring development in information and technology, most of the business have been changed altogether and have adopted various policies to fit in the changing and continuously evolving economic world. The following paragraphs highlight the management system of one of such organization.

Discussion

Selection of the organization

The organization selected for this assignment is 'Wal-Mart', which is one of the largest chains of stores running and operating across the world, which is based in America. The chain is basically composed of discount stores and warehouse stores that has been operating since 2008, and is now counted as world's third largest public corporation according to the Fortune Global 500 that was presented in 2012.

Identification of structure of the organization and its inventory management

As Wal-Mart is an international organization, with stores present in a number of districts in USA and others spread across the globe, the organization follows the principle of division management and has created distinct and clear geographic business territories throughout USA.

Keeping in view the vast and spread out business of Wal-Mart, it is eminent for the organization to have an established inventory system. Wal-Mart has maintained that by following its signature 'everyday low prices' by informing the store managers which products are selling these days and which of them are taking most of the shelf and warehouse space (Soderquist, 2005). This assists the Wal-Mart in ensuring that the costumers get exactly what they want, and in the amount that they require.

Description of the organization

Wal-Mart is currently visited by more than 200 million costumers and members each week, which implies that it is one of the most visited chain having stores around the globe. The stores offer various methods of shopping, including retail outlets, online store and shopping via mobile device. Wal-Mart is operating under 69 different banners in more than 27 countries, and according to the latest reports, the fiscal year 2012 sales reach approximately $444 billion. The number of employees of Wal-Mart is 2.2 million, which makes it the largest employer of the world (Wal-Mart, 2012).

Primary business of the organization

The primary business of Wal-Mart is to establish departmental stores and warehouses, in order to provide inexpensive good to public by using various means, including cheap outsourced labor ...