Question

What factors should Walmart take into account when designing its supply chain network, including where and how big its warehouses should be? How do the location and size of warehouses affect the performance of a firm such as Walmart?

Answer 1

Walmart is an American based multinational firm that deals in retail business, grocery items at discounted prices. The company has spread into various places around the world and working exceptionally well in the current situation. There is no doubt that Walmart includes multiple items for which they need to have giant warehouses to store those items carefully. The company needs to find a warehouse near its stores to transfer goods from warehouses to the stores quickly. Moreover, the warehouse's location and size play a vital role in the company's point of view. It minimizes the risk of the products and having a big warehouse can help the store put all the inventory quickly. There will be fewer chances of wastage of the products. The favorable location of any company's store can increase its business, and it can take a competitive advantage over its competitors in the market. There will be chances of growth, which will help the company achieve its organizational objectives effectively and efficiently.