Discuss the feasibility of your recommendations based on supply chain constraints of Walmart in the case study. Justify your claims with specific evidence.
Prompt
Using the provided
Walmart China case study, create a supply chain evaluation in which you assess
Walmart in terms of its demand forecasting, sourcing, transportation, and
warehousing processes in order to develop SCM recommendations that will reduce
costs and risks to the business operation. It is strongly recommended that you
thoroughly review the prompt below before you read the case study, and you
should continue to refer to the prompt as you read. You should format your
analysis and recommendations as if you were a consultant hired by Walmart.
Specifically, the following critical elements must be addressed:
I.
Executive Summary: In this section, explain the
purpose of your brief and highlight key information and findings that will aid
the understanding of the more in-depth analysis and recommendations to follow.
II.
Demand Forecasting: In this section, first
assess the supply and demand side of Walmart’s product flow, including the
customer’s needs and the supplier’s capabilities, in order to then identify
potential alignments that will keep cost and waste at aminimum.
A. Evaluation 1. Analyze Walmart’s suppliers in terms of
their abilities to meet the demand of customers during steady-state and peak
operations. How effective are each supplier’s inventory reorder points and
economic order quantities? Support your analysis with quantitativeexamples. 2.
Additionally, describe demand-forecasting constraints that exist within the
supply chain. For example, consider the distance of the stores and the
compatibility of the products in terms of shipping, storage, and so on.
B. Recommendations: Based on your evaluation, recommend
strategies for better aligning the supply and demand side of Walmart’s product
flow that will keep cost and waste at a minimum.
III.
Sourcing: In this section, first evaluate the
network sourcing strategy of Walmart in order to then identify possible areas
in need of improvement that will leave room for future expansion.
A. Evaluation: Assess the current network sourcing
strategy and determine whether or not the number and quality of suppliers is
the optimal mix for the operation. To what extent do the current suppliers meet
steady-state and peak demand? Are they consistently providing products that
meet or exceed Walmart’s quality standards? Defend your assessment with
examples.
B. Recommendations 1. Recommend a strategy to optimize the
sourcing network that takes into account current operations and leaves room for
future expansion. Be sure to consider any alternative sources of materials
available to the organization in yourresponse. 2. Recommend a standard
procedure for vetting suppliers to ensure that they are compliant with the
corporate social responsibility guidelines of Walmart. 3. Make sure that you
have recommended the best sourcing practices for Walmart using appropriate
quantitativemethods.
IV. Transportation: In this section, first consider the
effectiveness of Walmart’s transportation network in order to then determine
possible cost savings without sacrificing performance.
A. Evaluation 1. Identify constraints within the
transportation network and discuss the impact they will have on the overall
supply chain operation. Be sure to provide specific examples to illustrate. 2.
Analyze the transportation network and determine whether or not the correct
modes of transportation are being used based on time, cost, and quantity.
B. Recommendations: Make recommendations on how to improve the
transportation network given the constraints you identified, using specific
examples to illustrate and justify your claims.
V. Warehousing: In this section, first analyze Walmart’s
warehousing network to in order to then determine requirements and develop
recommendations for adequately meeting current and future storage needs.
A. Evaluation 1. Analyze the
current warehousing infrastructure to determine if the current warehousing
network adequately meets storage needs. Additionally, consider eventual
expansion requirements of Walmart’s operation. What are the constraints or
restrictions involved in the possible locations? 2. Identify considerations for
special handling of hazardous materials and describe their impact on
warehousing for the current mix of products that Walmart’s SCM is handling,
using specific examples.
B. Recommendations 1. Determine
warehousing requirements that will ensure adequate availability of resources
for the organization. Support your proposed requirements with given production
and demand elements from the scenario. 2. Based on your determination of
requirements, recommend a warehouse design that will minimize movements between
functions and reduce costs. Explain how your recommendation will drive this
improvement throughout the network, considering facility costs, inventory
carrying costs, personnel costs, and equipment costs.
VI. Conclusions: In
the final section, take a critical look at your various recommendations in
order to develop final conclusions for Walmart.
A. Prioritize your
demand-forecasting, sourcing, transportation, and warehousing recommendations
based on efficiency gain, cost, and sustainability.
B. Discuss the
feasibility of your recommendations based on supply chain constraints of
Walmart in the case study. Justify your claims with specific evidence.
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