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Decision Analysis_Discussion 4

Decision Analysis_Discussion 4

Q Have you ever walked into a Wal-Mart store to find an item out of stock? Using the concepts discussed in the previous module on forecasting and in this module, address the following questions: How does Wal-Mart ensure that its shelves are always full? Do you think that it stocks an excessive amount of inventory on its shelves?

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The Wal-Mart is one of the largest retailing chain in the world and it has a huge dominance over the retail market. The Wal-Mart ensures that no item would be out-of-stock in the store as long as the producer is producing it. To maintain this they have to take the help of the forecasting method as well as they have to make the appropriate inventory decisions. The inventory decisions include two main questions, “how much to order” and “when to order” (Render, 2018). They use the forecasting method to get the answers of these two questions.