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Walmart: The Importance Of Inventory Management

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THE IMPORTANCE OF PROPER INVENTORY MANAGEMENT AND CONTROL SYSTEMS FOR BUSINESSES LIKE WAL-MART

INTRODUCTION
This is an individual assignment prepared for Cost Accounting module in Bachelor of Business at Mandhu College. This assignment is based on the importance of proper inventory management and control systems for businesses like Wal-Mart. This report will give you a brief introduction of Wal-Mart and how they manage their inventory in order to improve their earnings. At the same time this report will highlight the importance of a proper inventory management and control system for a business to run successfully.
BRIEF INTRODUCTION OF WAL-MART

Wal-Mart 's history is one of innovation, leadership and success. Wal-Mart was founded by Sam Walton …show more content…

The process of inventory management involves proper controlling of the units from one place to another as well as prevents the stock from being too high. This process also helps any enterprise to keep the levels of unit at a certain pint which would help in the operation of the same. Proper inventory management helps to control costs which are associated with the entire process. The inventory management will take into consideration the total value of the goods which would include tax to be generated on the cumulative value of the stock of …show more content…

Most of the companies use inventory management in order to practice expensive business operations. This will help them to maintain and keep a track record of the entire inventory which helps to overcome any shortage of goods. Many of the systems which are used within inventory management system are linked with the management information system which would help to enhance the overall efficiency of the same. Inventory management system would help business to keep a record of their consumer sales accurately. With the help of the electronic inventory system, the overall sales would be identified. This system would also help to measure the minimum number of units which shall be kept in order to have minimum current levels of stock. Inventory management system would also allow the enterprises to maintain proper levels of stock not by increasing the levels of cost but by over ordering the levels of stock. Electronic data interchange a system of inventory management would be quite helpful in order to measure the lead time in order to receive a new

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