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Conduct research on Wal-Mart Inventory Management System Wal-Mart serves customers and members more than 200 million times per week at more than 9005 retail units under 60 different banners in 15 countries. With fiscal year 2010 sales of $405 billion, Wal-Mart employs 2.1 million associates worldwide. (Walmartstores.com, n.d.)

A leader in sustainability, corporate philanthropy and employment opportunity, Walmart ranked first among retailers in Fortune Magazines 2010 Most Admired Companies survey. (Walmartstores.com, n.d.) Inventory management is the active control program which allows the management of sales, purchases and payments. (IM, 2003-2011) Inventory management software helps create invoices, purchase orders, receiving lists, and payment receipts and can print bar code labels. An inventory management software system configured to your warehouse, retail or product line will help to create revenue for your company. The Inventory Management will control operating costs and provide better understanding. We are your source for inventory management information, inventory management software and tools. (IM, 2003-2011)

Wal-Mart was able to reduce unproductive inventory by allowing stores to manage their own stocks, reducing pack sizes across many product categories, and timely price markdowns. (Chandran P.M, 2003) Instead of cutting inventory across the board, Wal-Mart made full use of its IT capabilities to make more inventories available in the case of items that customers wanted most, while reducing the overall inventory management.(Chandran P.M, 2003) Wal-Mart also networked its suppliers through computers. The Company entered into collaboration with P&G for maintaining the inventory in its stores and built an automated reordering system, which linked all computers between P&G factory through a satellite communication system. P&G then delivered the item either to Wal-Mart distribution centre or directly to the concerned stores. (Chandran P.M, 2003) Benefits from that are Wal-Mart could monitor its stock levels in the stores constantly and also identify the items that were moving fast. P&G could also lower its costs and pass on some of the savings to Wal-Mart due to better coordination. (Chandran P.M, 2003)

Employees at the stores had the Magic Wand, a hand-held computer which was linked to in-store terminals through a radio frequency network. Benefits from that these helped them to keep track of the inventory in stores, deliveries, and back up merchandise in stock at the distribution centres. (Chandran P.M, 2003)

The order management and store replenishment of goods were entirely executed with the help computers through Point-Of-Sales (POS) system. Through this system, it was possible to monitor and track the sales and merchandise stock levels on the store shelves. (Chandran P.M, 2003)

Wal-Mart also made use of the sophisticated algorithm system which enabled it to forecast the exact quantities of each item to be delivered, based on inventories in each store. It benefits by providing accurate data that even bulk items could be broken and supplied to the stores. (Chandran P.M, 2003)

Wal-Mart also used a centralized inventory data system using which the personnel at the stores could find out the level of inventories and the location of each product at any given time. It is also showed whether a product was being loaded in the distribution centre or was in transit on a truck. Once the goods were unloaded at the store, the store was furnished with full stocks of inventories on a particular item and the inventory data system was immediately updated. (Chandran P.M, 2003)

Wal-Mart also is using bar code technology and radio frequency technology to manage its inventories and enabled accurate distribution of goods.Using bar codes and fixed optical readers, the goods could be directed to the appropriate dock, from where they were loaded on to the trucks for shipment. (Chandran P.M, 2003)

Wal-Mart owned the largest and most sophisticated computer system in private sector. The company used Massively Parallel Processor (MPP) computer system to track the movement of goods and stock levels. (Chandran P.M, 2003)

Wal-Mart used Cross-Docking system. In a cross-docking system, pallets of material are received on one dock, broken down into customer specified loads while still on the dock and transferred to outbound trucks. Items are not placed in slots for storage. (Osha.gov, n.d)

Benefits: By making effective use of computers in all its companys operations, Wal-Mart was successful in providing uninterrupted service to its customers, suppliers, stockholders and trading partners. (Chandran P.M, 2003)

2. Evaluate on how the system is benefiting Wal-Mart

Improve performance and value for customers Made efforts to capitalize on every cost saving opportunity The savings on cost were always passed on to the customers, thereby adding value at every stage and process Faster inventory turnover, accurate forecasting of inventory levels, increased warehouse space, reduction in safety stock and better working capital utilization. Better customer services by increasing efficiency in operations Reduce inventory storage costs by using cross-docking and cut down the labor and other handling costs involved in the loading and unloading of goods.

Immediate Inventory Management: Everyone Wins with RFID Technology at Walmart

By Jay Schofield, SystemID Director of Marketing Last weekend I was in Walmart looking for some shorts when I heard the oddest noise coming from the other side of the rack. It sounded like a fast-paced video gamebeep, beep, beep, beep (all within micro seconds of each other). What could this be? I thought. As I peeked around the corner, I was amazed to see a stock clerk from Walmart walking through the clothes racks getting a real-time floor inventory with a Motorola RFID scanner. This is how far we have come. Stores no longer spend valuable time and money restocking after hours. Now, they restock as soon as they take floor inventory off the rack. And with RFID technology, they instantly know the brands, models, and sizes that consumers are buying, which helps the whole supply chain become more efficient.

So, how does this on-demand inventory control benefit consumers? As you know, Walmart remains the most competitively priced superstore in the U.S., duein partto the reduced overhead for night stockers and merchandisers. This means consumers not only save money when they shop there, they also enjoy incredible service. For example, have you noticed that Walmart never seems to be out of stock on the floor? Thats because real-time RFID inventory counts alert employees to immediately replenish the racks instead of waiting to restock overnight. Purchasing is also notified on the spot so they can place orders throughout the day instead of the next morning after overnight numbers come in. (And for those of you who think Walmart uses this technology to track toilet paper to your house, this is not a Big Brother conspiracy. All RFID tags are disabled at checkout.) Walmart simply uses this technology to improve their operations and better serve shoppers like you and me. And its working. I not only quickly found the shorts I was looking for in my size and color; I breezed through self-service checkout and was out of the store in less than five minutes. Isnt technology great?

INVENTORY CONTROL

Inventory control consists of all the activities and procedures used to control and maintain the right amount of each item in stock at minimum cost. It is a supervision of the supply and storage of products as well as accessibility of those products in order to insure an adequate supply without excessive oversupply. Inventory control involves the process of maintaining

sufficient inventory measures to meet customer needs weighted against the cost of carrying inventory. The main objective of inventory control is to determine an optimal levels of inventory. Maintaining a good inventory control system is very important for any business, and it is especially important for a larger retailer such as Wal-Mart. The main objective of the inventory control is to have enough merchandise to satisfy customer needs, but at the same time not to have an overload of products so that the products will not go to waste or devalue. Before computerizes inventory control systems were invented employees had to manually record every item that went in and out of the store. With todays technological advancements, several inventory tracking systems were invented. Bar code and Radio Frequency Identification systems are extremely popular. One of the main systems of inventory control Wal-Mart uses is the bar code system. Every time an item gets purchased and swiped through a laser bar code reader, the system notifies employees about a quantity of the product remaining in the store and if the product needs to be reordered. Radio Frequency Identification is more advanced than the bar code system. It can not only read, but can track where each item is located in the store, even if the item is out of place. Tracking each product with the help of sophisticated inventory control system helps Wal-Mart managers to forecast customer demands for certain products in the store. Depending on the customer flow and demand, inventory control systems in different WalMart stores may vary slightly, however, in general each Wal-Marts' inventory control system is standardized. The inventory control system of the Supercenter #1529 is very similar to the inventory control systems of other Wal-Mart stores. Even with the most carefully maintained inventory control sistem shortages and overages of inventory occasionally occur at Wal-Mart. If that happens, mistakes have to be corrected and inventory issues resolved. As operations manager at Wal-Mart stated: "Walmart has a build in system of credits in our stores that come off Walmart's truck. However, when Wal-Mart has issues above credit lines, Wal-Mart contacts the suppliers and the warehouse to make sure Wal-Mart has full credit of products that are issued." According to the operations manager, the store has a very good inventory system that usually overcomes these mistakes. Wal-Marts inventory control system helps the store to maintain its signature "everyday low prices" by keeping track and notifying management of the top selling products and the products that do not sell well. Modern inventory control systems keep track of sales, warehouse supplies, and communicate with store suppliers in near real time. Todays inventory control systems had greatly improved the inventory control process. Without those technological advancements, the stores such as Wal-Mart would not be as efficient as they are today.

CAPACITY PLANNING

Wal-Mart is the world's largest retailer and its capacity planning is complex. Our team will focus on the capacity planning process in the Wal-Mart Supercenter #1529. Capacity planning is a process that involves predicting future constraints based on sales forecasts, projected inventory, and replenishment requirements. Planning capacity is extremely important for an organization. An inconsistency between the capacity of an organization and the demands of its customers can result in inefficiency, either in under-utilized resources or unsatisfied customers. The goal of capacity planning is to minimize and eliminate this inconsistency. Capacity can be increased through introducing new techniques and equipment, increasing the number of workers or machines, or increasing the number of shifts. According to the article Capacity planning: the antidote to supply chain constraints, companies that are involved in retail business face a persistent problem of optimizing their capacity. Shortages of capital, people, equipment, and space can keep products from flowing smoothly through the supply chain. The article further states that the most cost-effective way to manage capacity constraints is to anticipate them. One proven technique is time-phased capacity planning. According to the article, time-phased capacity planning enables managers to recognize future capacity constraints with enough possible time to pursue alternatives. This way, constraints can be resolved and eliminated before they become a problem. Wal-Mart does a lot of planning when it comes to bringing in the right products during certain time periods of the year. As customer's preferences change, Wal-Mart has to keep up with the right products for each season. According to the operations manager at Wal-Mart, the store introduces seasonal products at least one or two months in advance. To help Wal-

Mart plan for the right variation of products in the store, Wal-Mart gives its customers surveys. These surveys also help Wal-Mart to identify customers demands for variety of products. In Wal-Mart aisles are standardized. According to the operations manager, Wal-Marts home office decides on the arrangements of the aisles. Home office also decides on how the product lines are arranged within the aisles. This department also determines where the next WalMart will be location. Home office needs to make sure there is enough space and land for a new Wal-Mart to be built in a new location.

SCHEDULING

One of the most important factors of retailing is scheduling employees. According to the article "Factors of scheduling For The Retail Managers" by Shari Waters, When scheduling employees, it is important to have a good balance between the store needs and workers satisfaction. The article also explains how the difficulty of scheduling will vary depending on the size of the store, the average sales volume, and the number of employees available. Also, through the scheduling process management needs to find an optimal balance between the stores payroll budget and the coverage needed. Wal-Marts management team does the employees'

schedules three weeks in advance. And since Wal-Mart is such a lagre store, there are never too many employees to work in one day. Retailers in chain store environments such as Wal-Mart, are usually given labor budgets by their regional/district managers or corporate office. These payroll dollars generally vary from week to week as sales fluctuate, and the retail managers have no control over the labor budget. Independent retailers may use retail industry standards to estimate the amount of payroll dollars to spend. This amount is usually determined during the business planning process. Payroll dollars are usually determined as a percentage of sales. The budgeting stem is very important to Wal-Mart when it comes to predicting sales of products. The Operations Manager said, "The budget system is where Wal-Mart forecasts each week. Based upon those forecasts and sale trends the system automatically generates schedules based upon what Wal-Mart forecasts per department and what the sales would be doing per department." Walmart has many departments, which includes grocerey, apparel, electronics, home improvement, pets, and many more. Employees at Wal-Mart required to have certain number of registers open during specific times of the day to prevent long waiting lines and to ensure customer satisfaction. Based upon customer flow and the projected forecasts, the automated system helps generate schedules for the store employees. This system is called "Registers Open Plan." Walmart Operations Manager stated, "About 95 percent of merchandise in the store is ordered through the registers. Wal-Marts system has order points for everything. It will automatically order everything based upon what we are selling in the store compared to what we have in the store to meet the customers' demand." The employees at Wal-Mart work together as a team. Each of the employees is trained to work in more than one department, so if the store does not have enough associates in one department associates from other departments can take over. According to the operation manager, Wal-Mart never has too many employees working, and the store currently employes over 550 people.