What system does Walmart use to maintain their inventory levels?

What system does Walmart use to maintain their inventory levels?

• A. Manual review system
• B. Continuous review system
• C. Periodic review system
• D. Just-in-time inventory system

Answer: (B)

Walmart employs a continuous review system to maintain its inventory levels. This system allows the company to monitor inventory levels in real-time and make decisions about ordering stock as needed. By utilizing a continuous review approach, Walmart can respond quickly to changes in demand and avoid stockouts or overstock situations. This flexibility is crucial for a retailer of Walmart's scale, where the efficient management of inventory directly impacts customer satisfaction and overall operational efficiency. In a continuous review system, inventory is tracked on a consistent basis, and re-ordering happens when stock levels fall to a predetermined threshold. This method contrasts with periodic review systems, where inventory is checked at regular intervals, which could lead to missed opportunities for stocking popular items. Likewise, while just-in-time inventory systems focus on minimizing inventory by receiving goods only as needed for production, Walmart's robust logistics and demand forecasting capabilities allow it to effectively implement continuous review practices to ensure a balanced inventory that meets customer needs efficiently.

Walmart employs a continuous review system to maintain its inventory levels. This system allows the company to monitor inventory levels in real-time and make decisions about ordering stock as needed. By utilizing a continuous review approach, Walmart can respond quickly to changes in demand and avoid stockouts or overstock situations. This flexibility is crucial for a retailer of Walmart's scale, where the efficient management of inventory directly impacts customer satisfaction and overall operational efficiency.

In a continuous review system, inventory is tracked on a consistent basis, and re-ordering happens when stock levels fall to a predetermined threshold. This method contrasts with periodic review systems, where inventory is checked at regular intervals, which could lead to missed opportunities for stocking popular items. Likewise, while just-in-time inventory systems focus on minimizing inventory by receiving goods only as needed for production, Walmart's robust logistics and demand forecasting capabilities allow it to effectively implement continuous review practices to ensure a balanced inventory that meets customer needs efficiently.