How Is WalMart Able To Keep Track Of Its Inventory?

Wal-Mart Case Study
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1. How is Wal-Mart able to keep track of its inventory? Why is this important?
At Wal-Mart stores, they can keep track of inventory by using a very clever gadget known as Telson. Once the device scans the bar code, it can keep all the information about the various products. Keeping inventory is important because the store can keep accurate records of what was sold, at what time it was sold, the prices of each product and be able to tell which products sell the most.
2. What effects has this inventory system had on producers?
The inventory system used at Wal- Mart is fast and therefore makes orders within a very short time. To the producers, this may not be an advantage because they at times may not be able to meet the high demands of the orders made on a daily basis.
3. What two powerful forces converged in the 90s that Wal-Mart took advantage of? How did they benefit from them? How has this changed the retailing business?
The two powers that converged during the 90s were the United States and China. Wal-Mart took advantage of the good relationship between the two powers for business related reasons (Hausman & Leibtag 2007). Wal-Mart gets most of the products that they sell from China at the most competitive prices in the market and enables the store to sell all the goods available at prices which are lower passing on the savings to their clients. As a result retailing is very profitable for large companies which are in business.
4. What factors most contributed to the decline of Rubbermaid from 1994 to 2004?
Several factors contributed to the decline of the Rubbermaid one of them being an increase in the cost of production for Rubbermaid products. To sustain the business, they were forced to charge the retailers more. Wal-Mart, on the other hand, was not comfortable with the high prices that have been accused and therefore kept on reducing the amount of Rubbermaid products that they bought and finally the company collapsed.
5. What is an opening price point? How does it influence sales?
An opening price point refers to the lower prices offered for various products. A lower price is one thing that is capable of attracting a huge number of customers, and it is the main thing that defines Wal-Mart stores. Selling at lower prices increases the sales and the small profit from each item sold will increase by ...