Wal-Marts Dilemma In The 21st Century: Sales Growth Vs. Inventory Growth

Main Article Content

Seungjae Shin
Jack E. Tucci

Keywords

Wal-Mart, RFID, Supply Chain Innovation

Abstract

Wal-Mart has been a leader in the retail industry since 1980s. In the 21st century, Wal-Marts RFID initiative is another innovation for Wal-Marts supply chain management. Wal-Marts recent business target in the 21Century is making a higher sales growth rate than inventory growth rate. Comparing with financial ratios of Wal-Marts competitors, Wal-Mart has significantly better ratios for days-in-inventory, inventory-sales-ratio, and cash-conversion-cycle. However, there is no significant evidence of better ratios for supply chain related profit ratio. Regression analysis reveals that while days-in-inventory has a similar effect on both sales growth rate and inventory growth rate, supply chain ratio has more effect on inventory growth rate than sales growth rate.

Downloads

Download data is not yet available.
Abstract 678 | PDF Downloads 844