‫المملكة العربية السعودية‬

Kingdom of Saudi Arabia ‫وزارة التعليم‬

Ministry of Education ‫الجامعة السعودية اإللكترونية‬
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 1
Introduction to Operations Management (MGT 311)
Due Date: 01/03/2025 @ 23:59 THE SIXTH WEEK

Course Name: Introduction to Operations Student’s Name: kadi alharbi

Management
Course Code: MGT 311 Student’s ID Number: s210046422
Semester: Second CRN:24115
Academic Year:2024-25-2nd

For Instructor’s Use only

Instructor’s Name:
Students’ Grade: Level of Marks: High/Middle/Low
Marks Obtained/Out of 10

General Instructions – PLEASE READ THEM CAREFULLY

 The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
 Assignments submitted through email will not be accepted.
 Students are advised to make their work clear and well presented; marks may be reduced
for poor presentation. This includes filling your information on the cover page.
 Students must mention question number clearly in their answer.
 Late submission will NOT be accepted.
 Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
 All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
 Submissions without this cover page will NOT be accepted.
Learning Outcomes:

 Understand fundamental supply chain management concepts.

 Apply knowledge to evaluate and manage an effective supply chain.
 Understand the foundational role of logistics as it relates to transportation and
warehousing.
 How to align the management of a supply chain with corporate goals and
strategies.

Go through the given case scenario

Choose an organization operating in any part of the globe (preferably a super

market, hyper market chain (or) a fast-food industry or an electronics
equipment manufacturer/distributor, automobile manufacturer or automotive
parts or retail products / services.

The organization that you choose should either manufacture or market or

distribute some products / services. The competition in these businesses
majorly depends upon price, quality, timely delivery and service (which are
core aspects of Supply Chain Management). Hence there is immense
pressure on all the organizations in these businesses to keep the four aspects
mentioned to their supreme best.

As these businesses are the most emerged industries in the recent past, the
supply chain has seen huge transformations. These businesses are getting to
the maturing stage and so as the transformations in the supply chain
management of these business become more and more competitive, the
customer gets only the best products / service.

Note: In case your chosen organization is operating in many countries

and deals with many products, it is enough you consider the operations
in any one country and indicate some materials that are part of the
business and select 2 or 3 materials out of them for providing answers to
the questions given below.

Students can make use of graphs, tables, illustrations, maps, pictures,

images to add clarity to your answers.
 1. Examine and evaluate your chosen organization’s Supply Chain,
describe its basic working, strategy used by them, key drivers for
achieving an integrated supply chain. What is the SCM model used?
(2MM)

2. Go through the typical Working of the chosen Organization’s logistics

process, Is there a role for reverse logistics for your chosen
organization’s products / services? If there is a role, explain the
process that is applicable. (2MM)

3. Analyse and understand the different modes of transportation

employed by your chosen organization. Indicate whether the current
arrangements are effective. Suggest improvements for making the
transportation sustainable and new modes of transportation. (2MM)

4. What is the Warehouse design used by the chosen organization and

provide your idea on the appropriate warehouse design that will be
suitable for the future. Justify your choice with proper reason. (2MM)

5. Given the nature of the products that you have selected for your
chosen organization, what is the type of Inventory management
control that your chosen organization should adopt? Give reasons.
(2MM)

Note:
 You must include at least 5 references.
 Format your references using APA style.
 Each answer must not be less than 300 words

Answers
1. Answer-
Walmart Supply Chain Analysis and Evaluation

Walmart operates one of the most advanced and integrated supply chains in the
world. Its strategy focuses on providing high-quality products at the lowest cost
by leveraging efficient inventory management, strong supplier relationships, and
advanced technology.

Key factors that contribute to an integrated supply chain:

• Supplier collaboration: Walmart maintains long-term partnerships with its
suppliers, enabling bulk purchasing at competitive prices. This enhances trust
and seamless coordination.
• Use of technology: The company uses the latest technologies, such as radio
frequency identification (RFID), to monitor inventory in real time, ensuring
timely restocking and reducing stockouts.
• Transportation management: By overseeing its transportation fleet, Walmart
optimizes delivery schedules and route planning, enhancing efficiency.
• Distribution centers: These centers play a critical role in Walmart’s supply
chain, facilitating faster deliveries and reducing delivery times.

Supply Chain Management (SCM) Model:

Walmart applies a supply chain management model where customer demand

determines the replenishment process. By collecting real-time sales data through
point-of-sale systems, the company ensures that products are stocked based on
actual demand, reducing excess inventory and waste.

2. Answer-
Logistics and Reverse Logistics

Walmart’s logistics system is designed to ensure that products are transported

efficiently and on time from suppliers to distribution centers, and ultimately to
retail stores. The process has been significantly optimized, reducing handling at
every stage to reduce costs and delivery times.

Reverse Logistics:

Reverse logistics is a key component of Walmart’s supply chain, particularly for

managing product returns, recycling, and disposing of unsellable or defective
items. Key aspects of Walmart’s reverse logistics process include:
• Returns processing: Returned products go through an evaluation system to
determine their condition. Items that meet quality standards are reintegrated
into inventory for resale.
• Recycling and disposal: Products that cannot be resold are responsibly
recycled or disposed of in line with Walmart’s sustainability initiatives.
• Refurbishment: Some items, such as electronics, are refurbished for resale,
reducing waste and increasing resource efficiency.

3. Answer-
Transportation Analysis

Walmart uses a range of transportation methods, including trucks, rail, and air
freight, to efficiently move products from suppliers to distribution centers and
retail stores.

Efficiency:

Walmart’s transportation network is highly efficient, supported by its own fleet

and collaborations with third-party logistics providers. This system ensures
timely delivery of products while keeping operating costs low.

Recommended Improvements:
• Sustainability Initiatives: Walmart could enhance its environmental efforts by
investing in electric or hybrid trucks, which would help reduce carbon
emissions.
• Innovative Transportation Methods: The company could explore drone
technology for last-mile delivery, especially in rural areas where traditional
logistics methods may be less effective.

4. Answer-
Warehouse Design

Walmart uses a hub-and-spoke warehouse model, where central distribution

centers deliver products to retail stores. This structure reduces the distance
between warehouses and stores, allowing for faster deliveries and more efficient
restocking.

Optimized Warehouse Design for the Future:

A smart warehouse system will be a strategic choice for Walmart’s future

operations. This design will include automation technologies, such as robotic
pick-and-pack systems, conveyor belts to move products quickly, and AI-
powered inventory tracking and optimization.

Justification:

Implementing a smart warehouse will significantly improve operational

efficiency by reducing labor costs, improving order fulfillment accuracy, and
increasing storage capacity without requiring additional physical space.

5. Answer-
Inventory Management Control

Given Walmart’s wide product range and volatile demand, the company uses a
combination of inventory management strategies: just-in-time delivery for
perishables and vendor-managed inventory for nonperishables.
Rationale:
• Just-in-time delivery for perishables: This strategy reduces waste while
ensuring fresh products are always available. Walmart leverages real-time sales
data to restock perishables before they run out.
• Vendor-managed inventory for nonperishables: In this approach, suppliers
monitor inventory levels based on Walmart’s sales data. This reduces the
workload on Walmart’s inventory management team and ensures an efficient
replenishment process.

By incorporating these inventory management techniques, Walmart successfully

keeps operating costs low while offering a diverse product range at competitive
prices.

References:
• Chopra, S., & Meindl, P. (2016). Supply chain management: strategy, planning,
and operation (6th ed.). Pearson.

• Rushton, A., Croucher, P., & Baker, P. (2017). The handbook of logistics and
distribution management (6th ed.). Kogan Page.

• Christopher, M. (2016). Logistics & supply chain management (5th ed.).

Pearson.

• Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015).

Purchasing and supply chain management (6th ed.). Cengage Learning.

• Walmart. (2023). Company website. Retrieved from [Link]