Management Question

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 1
Introduction to Operations Management (MGT 311)
Due Date: 05/10/2025 @ 23:59 THE SIXTH WEEK
Course Name: Introduction to Operations
Management
Course Code: MGT 311
Student’s Name:
Semester: First
CRN: 16378
Student’s ID Number:
Academic Year: 2024-25-1st
For Instructor’s Use only
Instructor’s Name: Dr. Abdullah Bubshait
Students’ Grade:
Marks Obtained/Out of 10
Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•
The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented; marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Learning Outcomes:
•
•
•
•
Understand fundamental supply chain management concepts.
Apply knowledge to evaluate and manage an effective supply chain.
Understand the foundational role of logistics as it relates to transportation and
warehousing.
How to align the management of a supply chain with corporate goals and
strategies.
Go through the given case scenario
Choose an organization operating in any part of the globe (preferably a super
market, hyper market chain (or) a fast-food industry or an electronics
equipment manufacturer/distributor, automobile manufacturer or automotive
parts or retail products / services.
The organization that you choose should either manufacture or market or
distribute some products / services. The competition in these businesses
majorly depends upon price, quality, timely delivery and service (which are
core aspects of Supply Chain Management). Hence there is immense pressure
on all the organizations in these businesses to keep the four aspects mentioned
to their supreme best.
As these businesses are the most emerged industries in the recent past, the
supply chain has seen huge transformations. These businesses are getting to
the maturing stage and so as the transformations in the supply chain
management of these business become more and more competitive, the
customer gets only the best products / service.
Note: In case your chosen organization is operating in many countries
and deals with many products, it is enough you consider the operations
in any one country and indicate some materials that are part of the
business and select 2 or 3 materials out of them for providing answers to
the questions given below.
Students can make use of graphs, tables, illustrations, maps, pictures,
images to add clarity to your answers.
1. Examine and evaluate your chosen organization’s Supply Chain,
describe its basic working, strategy used by them, key drivers for
achieving an integrated supply chain. What is the SCM model used?
(2MM)
2. Go through the typical Working of the chosen Organization’s logistics
process, Is there a role for reverse logistics for your chosen
organization’s products / services? If there is a role, explain the process
that is applicable. (2MM)
3. Analyse and understand the different modes of transportation employed
by your chosen organization. Indicate whether the current arrangements
are effective. Suggest improvements for making the transportation
sustainable and new modes of transportation. (2MM)
4. What is the Warehouse design used by the chosen organization and
provide your idea on the appropriate warehouse design that will be
suitable for the future. Justify your choice with proper reason. (2MM)
5. Given the nature of the products that you have selected for your chosen
organization, what is the type of Inventory management control that
your chosen organization should adopt? Give reasons. (2MM)
Note:
•
•
•
You must include at least 5 references.
Format your references using APA style.
Each answer must not be less than 300 words
Answers
1. Answer2. Answer3. Answer4. Answer-
5. Answer-
‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 2
Introduction to Operations Management (MGT311)
Due Date: 11/11/2023 @ 23:59
Course Name:
Student’s Name: SEU ELITE
Course Code:MGT 311
Student’s ID Number:
Semester: First
CRN:
Academic Year:2023-24-1st
For Instructor’s Use only
Instructor’s Name: Dr Alzahrani Saeed
Students’ Grade:
Marks Obtained/Out of10
Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•
The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Learning Outcomes:
•
•
•
•
Understand fundamental supply chain management concepts.
Apply knowledge to evaluate and manage an effective supply chain.
Understand the foundational role of logistics as it relates to transportation and
warehousing.
How to align the management of a supply chain with corporate goals and
strategies.
Go through the given case scenario
Choose an organization operating in any part of the globe (preferably a super
market, hyper market chain (or) a fast-food industry or an electronics
equipment manufacturer/distributor, automobile manufacturer or automotive
parts or retail products / services.
The organization that you choose should either manufacture or market or
distribute some products / services. The competition in these businesses
majorly depends upon price, quality, timely delivery and service (which are
core aspects of Supply Chain Management). Hence there is immense pressure
on all the organizations in these businesses to keep the four aspects mentioned
to their supreme best.
As these businesses are the most emerged industries in the recent past, the
supply chain has seen huge transformations. These businesses are getting to
the maturing stage and so as the transformations in the supply chain
management of these business become more and more competitive, the
customer gets only the best products / service.
Note: In case your chosen organization is operating in many countries
and deals with many products, it is enough you consider the operations
in any one country and indicate some materials that are part of the
business and select 2 or 3 materials out of them for providing answers to
the questions given below.
Students can make use of graphs, tables, illustrations, maps, pictures,
images to add clarity to your answers.
1. Examine and evaluate your chosen organization’s Supply Chain,
describe its basic working, strategy used by them, key drivers for
achieving an integrated supply chain. What is the SCM model
used?(2MM)
2. Go through the typical Working of the chosen Organization’s logistics
process, Is there a role for reverse logistics for your chosen
organization’s products / services ? If there is a role, explain the process
that is applicable.(2MM)
3. Analyse and understand the different modes of transportation employed
by your chosen organization. Indicate whether the current arrangements
are effective. Suggest improvements for making the transportation
sustainable and new modes of transportation.(2MM)
4. What is the Warehouse design used by the chosen organization and
provide your idea on the appropriate warehouse design that will be
suitable for the future. Justify your choice with proper reason.(2MM)
5. Given the nature of the products that you have selected for your chosen
organization, what is the type of Inventory management control that
your chosen organization should adopt? Give reasons.(2MM)
Note:
•
•
•
Youmust include at least 5 references.
Format your references usingAPA style.
Each answer must not be less than 300 words
Answers
1. AnswerBased in Saudi Arabia, Almarai is a well-known food and beverage firm that specializes
in dairy, juice, bakery, chicken, and newborn feeding items. Although they have interests
in other nations, for the sake of this analysis, we will concentrate on their operations in
Saudi Arabia, particularly in the dairy and juice industries. Almarai Supply Chain:
Production: Almarai runs cutting-edge manufacturing facilities where raw materials are
processed and turned into final goods. To uphold the highest product standards, they
make use of cutting-edge technologies and stringent quality control procedures.
Distribution and Warehousing: Once the goods are prepared, they are kept in carefully
chosen warehouses. To guarantee the effective and prompt delivery of their products to
retail stores, supermarkets, and other outlets around the nation, Almarai has a sizable
distribution network that includes refrigerated trucks.
Strategies to integrate supply chain:
Vertical Integration: By owning and managing several production stages, Almarai has
vertically integrated its supply chain. They can exert more control over quality, price, and
timeliness because of this integration.
Technology Adoption: To improve efficiency and accuracy in their supply chain
operations, Almarai invests in cutting-edge technology including automated production
lines and inventory management systems (Kamble, Gunasekaran & Gawankar, 2020).
Lead times are shortened and waste is reduced as a result.
Collaboration and Partnerships: To ensure efficient coordination and information
sharing, Almarai works closely with its distributors, suppliers, and retail partners. Better
inventory control, demand forecasting, and supply chain optimization are all made
possible by this collaborative approach.
Almarai’s key supply chain drivers:
Operational Excellence: The business consistently aspires to operational excellence by
implementing supply chain management best practices. This includes effective
production scheduling, improved inventory control, and simplified logistical procedures.
Again, Almarai values its customers and recognizes the significance of upholding their
expectations for product accessibility, freshness, and diversity. The organization aspires
to provide excellent client experiences by matching supply chain strategy with customer
preferences.
Demand-Driven Supply Chain (DDSC) is the supply chain management (SCM) strategy
that Almarai uses. This model places a strong emphasis on detecting, modifying, and
orchestrating demand to guarantee that the proper products are offered at the appropriate
time and location (Saeed & Kersten, 2019). Almarai can be flexible and responsive to
shifting market dynamics while avoiding excess inventory and maintaining high service
levels according to the DDSC model.
2. AnswerThe logistics flow for Almarai includes the following crucial steps:
Order processing: Almarai’s centralized order management system receives customer
orders via a variety of channels and logs them for processing.
Inventory management: Almarai strategically keeps warehouses for its products all
around the nation. Based on demand projections and previous sales information, these
warehouses are stocked. Inventory levels are closely monitored to assist in guaranteeing
the best stock availability (Negri, et al. 2021). Following the processing of orders and the
distribution of inventory, Almarai arranges for the delivery of its goods from warehouses
to clients. This entails arranging loads, scheduling, and optimizing delivery routes while
taking into consideration client preferences and delivery time windows.
Distribution of Products: Almarai has a fleet of refrigerated trucks for product delivery.
These trucks are sent out to deliver the assigned products to retail stores, supermarkets,
and other consumer sites after being loaded with the products. Systems for real-time
tracking are employed to keep track of delivery progress and guarantee precise and
timely deliveries.
Delivery and customer support: Almarai’s devoted delivery staff is in charge of
unloading products at customer locations and making sure that orders are fulfilled
accurately. Additionally, they offer customer service assistance, responding to any
questions or issues that clients may have.
Almarai runs into reversal logistics in certain tactics, like:
Returns of Products: Almarai should have procedures in place to handle returns of
products due to issues with quality or damaged goods, including inspection, replacement,
or refund.
Goods That Have Expired or Been Damaged: Under legal requirements and
environmental standards, Almarai must handle the return and disposal of goods that have
expired or been damaged.
The Reverse logistics procedure that applies to Almarai’s products:
Return Authorization: After contacting Almarai’s customer care or filing a return request
through the right channels, customers start the return procedure. Almarai checks the
return’s eligibility and, if required, issues a return authorization.
Product inspection: Almarai examines the returned goods once it receives them to
ascertain their state. This could entail looking for defects, expiration dates, or any other
difficulties with quality. Almarai keeps track of returned goods, the reasons they were
returned, and any related expenditures throughout the reverse logistics process. To find
trends, problems with product quality, or opportunities for supply chain optimization, this
data can be evaluated.
3. AnswerRoad Transportation: Almarai mainly relies on road transportation to deliver perishable
items to clients and retail establishments like juice and dairy products. With its fleet of
refrigerated vehicles, the business can quickly meet consumer demands and travel to
various regions. For Almarai’s activities in Saudi Arabia, road transportation is typically
efficient, but there are still issues that need to be resolved, such as traffic congestion, poor
road conditions, and fuel usage.
Rail Transportation: Due to its cost advantages and ability to relieve traffic congestion,
Almarai uses rail transportation for the bulk movement of raw materials like milk. It is
efficient for long-distance movements, although there is a need for improvement in the
accessibility of rail routes and operator cooperation.
Sea Transportation: To reduce its reliance on air freight and to enable large-scale
shipments for great distances at a lesser cost, Almarai may employ sea transportation to
obtain raw materials from international suppliers. Although beneficial for the company’s
global supply chain, aspects including shipment lead times, port congestion, and partner
coordination need to be watched for further advancements.
Air: Almarai uses air transportation for time-sensitive deliveries, such as the exportation
of perishable commodities or the delivery of high-value items. It provides quickness and
universal connectivity, guaranteeing prompt supply to foreign markets. Due to carbon
emissions, it can be expensive and have negative effects on the environment. To cut
emissions, sustainable alternatives should be investigated.
Almarai should take into account the following changes and strategies to its supply chain:
Green Fleet: By adopting electric or hybrid cars, Almarai can invest in a more
ecologically friendly fleet. This would lessen carbon emissions and help create a
transportation system that is more environmentally friendly.
Almarai can investigate multimodal transportation, which combines various modes like
rail and road or sea and road. This would eliminate any negative environmental effects,
lower total expenses, and improve transportation routes.
Collaboration & Consolidation: To reduce empty miles and condense shipments,
Almarai can work with other businesses in the sector. This would increase resource
efficiency, decrease transportation expenses, and cut emissions.
Last-Mile Delivery Optimization: Almarai can use technology and data analytics to
improve last-mile deliveries, reducing waste and rerouting traffic for a quicker and more
environmentally friendly delivery.
4. Answer-
Almarai now uses a mix of decentralized and centralized warehouse designs. To store and
transport its goods, the firm uses sizable, centrally located warehouses that are
strategically placed throughout Saudi Arabia. These central warehouses manage
operations including product receipt, storage, and distribution to various locations.
Almarai also makes use of smaller, decentralized warehouses adjacent to retail locations
to speed up replenishment and satisfy local client demand. Almarai might, nevertheless,
put into place an “Automated Warehouse” that boosts productivity and adaptability by
utilizing robotics, AI, and automation.
The following provides the reason for using an automated warehouse design:
Efficiency Gains: Robotic picking, sorting, and stacking are just a few examples of
automated technologies that can speed up and optimize warehouse operations. These
results in quicker order fulfillment, less labor being needed, and higher throughput.
Enhanced Accuracy: By decreasing human error in processes like inventory management,
automation increases accuracy. Automated solutions can correctly maintain inventory
levels, make the best use of available storage, and reduce stock inconsistencies,
improving order accuracy and lowering inventory holding costs.
Scalability and Flexibility: The design of an automated warehouse enables expansion and
flexibility in response to shifting business requirements. Without making significant
changes to the infrastructure, the system can handle growing order volumes and readily
accommodate additional product lines or seasonal variations.
Automation enables real-time tracking and monitoring of warehouse activities. Real-time
visibility and data analytics. This offers useful information on inventory levels, order
status, and performance indicators. Data analytics can be used to improve demand
forecasting, inventory distribution, and warehouse layout.
Cost optimization: While setting up an automated warehouse initially requires a
substantial capital expenditure, doing so can result in cost savings over the long run.
Automation improves total cost efficiency by lowering labor expenses, cutting inventory
holding costs, and making the best use of available space.
Almarai can gain from improved accuracy, scalability, real-time visibility, and cost
reduction by switching to an automated warehouse design. This design supports the
company’s goal of providing customers with the greatest goods and services while
preserving a competitive edge in the rapidly changing industry. Almarai needs to analyze
the technological viability of an automated warehouse design, as well as its specific
requirements and cost-benefit analysis. During this transformation, cooperation with
technology partners and knowledgeable consultants with a focus on warehouse
automation would be beneficial.
5. AnswerAlmarai would benefit from implementing a sort of inventory management control
known as “Just-in-Time (JIT) inventory management” given the company’s focus on
dairy goods. An approach called JIT inventory management seeks to reduce inventory
levels while ensuring prompt delivery and preserving product quality (Fayezi, Zutshi &
O’Loughlin, 2017). The following justifies why Almarai should use JIT inventory
management:
Dairy goods must be kept at exact temperatures because of their perishable nature and
short shelf lives, including milk, cheese, and yogurt. Almarai may reduce inventory levels
using JIT inventory management, lowering the chance of product waste and spoiling.
Almarai can guarantee fresher items and reduce the need for a lot of cold storage by
keeping inventory levels at a minimum and renewing inventory in response to client
demand.
Cost-effectiveness: JIT inventory management enables Almarai to cut holding expenses
related to the handling, storage, and obsolescence of inventory. Almarai can maximize
operational efficiency and lessen the need for big warehouses and extra inventory by
closely matching production and delivery with customer demand. This makes it possible
for the business to allocate its resources cost-effectively.
Strict quality control procedures are needed for dairy products to guarantee their safety
and freshness. By reducing the amount of time products are held in inventory, JIT
inventory management enables Almarai to retain tighter control over product quality
(Boysen, De Koster & Weidinger, 2019). Almarai can reduce the likelihood of product
quality deterioration during storage by sending goods directly from the production line to
customers or retail establishments.
Customer satisfaction: JIT inventory management places a priority on prompt delivery,
making sure that goods are accessible when customers require them. Almarai can meet
client demands for on-time delivery, boost customer happiness, and foster customer
loyalty by continuously monitoring consumer demand and changing production and
distribution accordingly.
Reduced Supply Chain Complexity: By expediting the movement of commodities from
manufacturing to the final consumer, JIT inventory management reduces supply chain
complexity. It does away with unnecessary inventory buffers and lessens the need for
intricate inventory management and tracking systems. Overall supply chain
responsiveness and efficiency are increased by this simplicity.
However, Almarai must build solid partnerships with suppliers and trustworthy logistical
networks to conduct JIT inventory management properly. Keeping the required flow of
raw materials and finished goods requires effective coordination and communication
between suppliers and distributors.
References
Almarai Corporation, (2023). Retrieved from:
Kamble, S. S., Gunasekaran, A., & Gawankar, S. A. (2020). Achieving sustainable
performance in a data-driven agriculture supply chain: A review for research and
applications. International Journal of Production Economics, 219, 179-194.
Fayezi, S., Zutshi, A., & O’Loughlin, A. (2017). Understanding and development of
supply chain agility and flexibility: a structured literature review. International
journal of management reviews, 19(4), 379-407.
Negri, M., Cagno, E., Colicchia, C., & Sarkis, J. (2021). Integrating sustainability and
resilience in the supply chain: A systematic literature review and a research
agenda. Business Strategy and the environment, 30(7), 2858-2886.
Saeed, M. A., & Kersten, W. (2019). Drivers of sustainable supply chain management:
Identification and classification. Sustainability, 11(4), 1137.
Boysen, N., De Koster, R., & Weidinger, F. (2019). Warehousing in the e-commerce era:
A survey. European Journal of Operational Research, 277(2), 396-411.
‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 1
Introduction to Operations Management (MGT 311)
Due Date: 05/10/2024 @ 23:59
Course Name: Introduction to Operations
Management
Course Code: MGT311
Student’s Name:
Semester: First Semester
CRN:16933
Student’s ID Number:
Academic Year:2024-25-1st
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: / 10
Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•
Restricted – ‫مقيد‬
The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented; marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Learning Outcomes:
•
•
•
•
Understand fundamental supply chain management concepts.
Apply knowledge to evaluate and manage an effective supply chain.
Understand the foundational role of logistics as it relates to transportation and
warehousing.
How to align the management of a supply chain with corporate goals and
strategies.
Go through the given case scenario
Choose an organization operating in any part of the globe (preferably a super
market, hyper market chain (or) a fast-food industry or an electronics
equipment manufacturer/distributor, automobile manufacturer or automotive
parts or retail products / services.
The organization that you choose should either manufacture or market or
distribute some products / services. The competition in these businesses
majorly depends upon price, quality, timely delivery and service (which are
core aspects of Supply Chain Management). Hence there is immense pressure
on all the organizations in these businesses to keep the four aspects mentioned
to their supreme best.
As these businesses are the most emerged industries in the recent past, the
supply chain has seen huge transformations. These businesses are getting to
the maturing stage and so as the transformations in the supply chain
management of these business become more and more competitive, the
customer gets only the best products / service.
Note: In case your chosen organization is operating in many countries
and deals with many products, it is enough you consider the operations
in any one country and indicate some materials that are part of the
business and select 2 or 3 materials out of them for providing answers to
the questions given below.
Students can make use of graphs, tables, illustrations, maps, pictures,
images to add clarity to your answers.
Restricted – ‫مقيد‬
1. Examine and evaluate your chosen organization’s Supply Chain,
describe its basic working, strategy used by them, key drivers for
achieving an integrated supply chain. What is the SCM model used? (2
Marks)
2. Go through the typical Working of the chosen Organization’s logistics
process, Is there a role for reverse logistics for your chosen
organization’s products / services? If there is a role, explain the process
that is applicable. (2 Marks)
3. Analyse and understand the different modes of transportation employed
by your chosen organization. Indicate whether the current arrangements
are effective. Suggest improvements for making the transportation
sustainable and new modes of transportation. (2 Marks)
4. What is the Warehouse design used by the chosen organization and
provide your idea on the appropriate warehouse design that will be
suitable for the future. Justify your choice with proper reason. (2
Marks)
5. Given the nature of the products that you have selected for your chosen
organization, what is the type of Inventory management control that
your chosen organization should adopt? Give reasons. (2 Marks)
Note:
•
•
•
Restricted – ‫مقيد‬
You must include at least 5 references.
Format your references using APA style.
Each answer must not be less than 300 words
Answers
1. Answer1. Supply Chain Examination and Evaluation
Walmart’s supply chain is one of the most efficient and integrated in the world. Its
strategy revolves around delivering high-quality products at the lowest possible cost
through efficient inventory management, supplier relationships, and technology
integration.
Key Drivers for Achieving an Integrated Supply Chain:
– Supplier Collaboration: Walmart has long-term relationships with its suppliers,
who provide competitive pricing due to bulk purchases. This enables a high level of
trust and coordination.
– Technology: Walmart uses sophisticated technology like RFID (Radio Frequency
Identification) to track inventory in real time, ensuring timely replenishment and
reducing stock-outs.
– Transportation: Walmart manages its transportation fleet, allowing it to control
delivery schedules and optimize routes.
– Distribution Centers (DCs): Walmart’s distribution centers play a key role in its
supply chain, allowing it to maintain efficient delivery systems and reduce lead time.
SCM Model:
Walmart uses a *Pull SCM Model*, where customer demand drives the
replenishment process. The company collects customer data through point-of-sale
systems and ensures that products are stocked based on real-time demand patterns,
minimizing waste and overstock.
2. Answer-
Restricted – ‫مقيد‬
2. Logistics and Reverse Logistics
Walmart’s logistics system focuses on the timely delivery of products from suppliers
to its distribution centers and then to its stores. The company’s logistics process is
highly streamlined, with minimal handling at each stage to reduce costs and time.
Reverse Logistics:
Yes, reverse logistics plays an important role in Walmart’s supply chain, especially
for handling returns, recycling, and disposing of unsellable or defective products. The
process for reverse logistics includes:
– Return Processing: Products returned by customers are processed through a system
that evaluates their condition. Items that can be resold are sent back to inventory.
– Recycling and Disposal: Unsellable items are either recycled or disposed of
responsibly, in line with environmental sustainability practices.
– Reconditioning: Some products, like electronics, are refurbished for resale.
3. Answer3. Transportation Analysis
Walmart uses multiple modes of transportation, including trucks, rail, and air freight,
to move products between its suppliers, distribution centers, and stores.
Effectiveness:
Walmart’s current transportation system is highly efficient due to its proprietary fleet
and partnerships with third-party logistics providers. The system ensures the timely
delivery of products to stores while maintaining low costs.
Suggested Improvements:
– Sustainability: Walmart can further improve sustainability by investing in electric
or hybrid trucks to reduce carbon emissions.
– New Modes: The company could also explore the use of drones for last-mile
delivery, especially in rural areas where traditional logistics systems are less efficient.
Restricted – ‫مقيد‬
4. Answer4. Warehouse Design
Walmart uses a *hub-and-spoke warehouse design*, with centralized distribution
centres feeding products to stores. This design reduces the distance between
warehouses and retail outlets, ensuring quick delivery and efficient restocking.
Suitable Future Design:
A *smart warehouse design* would be ideal for Walmart’s future needs. This would
incorporate automation technologies like robots for picking and packing, conveyor
systems for fast movement, and AI-powered systems for inventory tracking and
optimization.
Justification:
The smart warehouse would enhance operational efficiency by reducing labor costs,
increasing accuracy in order fulfilment, and allowing Walmart to handle more
products without requiring additional space.
5. Answer5. Inventory Management Control
Given Walmart’s wide range of products and demand variability, a *Just-in-Time
(JIT) Inventory System* is ideal for perishable goods, while a *Vendor-Managed
Inventory (VMI)* system is suitable for non-perishable items.
Reasons:
– JIT for Perishables: This approach reduces waste and ensures that fresh products
are always available on shelves. Walmart leverages real-time data to order perishable
goods just before they run out.
– VMI for Non-Perishables: In this system, suppliers manage inventory levels based
on Walmart’s sales data, which reduces the burden on Walmart’s inventory
management team and ensures that stock is replenished efficiently.
By implementing these strategies, Walmart maintains low operating costs while
offering a wide selection of products at competitive prices.
Restricted – ‫مقيد‬
References:
– Chopra, S., & Meindl, P. (2016). Supply chain management: Strategy, planning, and
operation (6th ed.). Pearson.
– Rushton, A., Croucher, P., & Baker, P. (2017). The handbook of logistics and
distribution management (6th ed.). Kogan Page.
– Christopher, M. (2016). Logistics & supply chain management (5th ed.). Pearson.
– Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015).
Purchasing and supply chain management (6th ed.). Cengage Learning.
– Walmart. (2023). Corporate website. Retrieved from
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