Inventory Analysis

Overview of Inventory V initiate Learning App Tablet
Wal-Mart Stores Inc., based in Bentonville, Arkansas, is Americas largest public corporation. Wal-Mart serves more than 200 million customers per week with 8,416 retail stores in 15 countries. Given the large flashiness of ware that is sold, Wal-Marts profits depend heavily on the control and management of its stock-taking (Crosby, 2007).
For many companies, inventory is at the heart of the operating cycle and must be conservatively managed and controlled. If a company doesnt have enough inventories to toy customers demands, it will lose sales. On the other hand, too more than inventory will increase carrying lives such as storage and interest costs as well as increase the risk of obsolescence.
Wal-Mart has long been recognized as a world leader in its effective use of applied science to manage and control its inventory and distribution. Even though inventory is an asset, it can have a major impact on net income. That is because all inventory accounting systems allocate the cost of inventory between ending inventory and cost of goods sold. Therefore, the military rank of inventory affects cost of goods sold, which then affects net income.



By managing and arrogant its inventory, Wal-Mart has been able to commit less per-unit money to inventory than its competitors, resulting in greater profits. This focus on inventory allows Wal-Mart to sell its merchandise at always low prices (The New York Times, 2012).
One of Wal-Marts key performance measures is the comparison of inventory growth to sales growth. In the recent recessionary economy, Wal-Marts sales of its V Teach Inno Learning App Tablet for children grew by only 1 percent with inventory stocks being held at 5 percent, an feature that Wal-Mart has not been able to effectively manage and control well-nigh aspects of its inventory in response to economic pressures.
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