30 Sep Demand Forecasting and Sourcing
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 forWalmart.
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.
