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1、Wal-Mart product and service design,Service Layout,Wal-Mart Shelf management,Capacity Planning for Wal-Mart,Capacity Planning,The process of determining the production capacity needed by an organization to meet changing demands for its products. The process of determining product quantity needed by
2、a firm to meet the demand of consumers.,Essential elements of Capacity Planning,Facility Product & Service Human Resource,Among all elements for capacity planning, followings are essential for Wal-Mart:,Facility Factor,Shop location Shop layout Shop Si z e Warehouse Si z e Warehouse layout,In USA Op
3、erating in 5 0 states 4,3 0 0 facilities for all sort of outlets Around the globe 14 countries 4 0 81 stores,Facility Factor,Shop location Shop layout Shop Size Warehouse Size Warehouse layout,New layout for customer experience. Shop layouts has been classified based on Wal-Marts operation Wal-Mart
4、supercenters a full-service supermarket Discount stores discount department stores Neighborhood Markets Shop for daily necessary goods Sams Club warehouses membership based stores,Facility Factor,Shop location Shop layout Shop Size Warehouse Size Warehouse layout,Wal-Mart U.S. 602.9 million sft. Wal
5、-Mart international 269.9 million sft Sams club 79.4 million sft Total Size 952.2 million sft. Average size of each outlet Wal-Mart supercenters Varies between 51,000 sft to 51,000 sft. Average size 102,000 sft. Discount stores Varying from 98,000 to 261,000 square with an average of 197,000 sft. Ne
6、ighborhood Markets Averages about 42,000 sft. Sams Club warehouses Average club size of 133,000 sft.,Facility Factor,Shop location Shop layout Shop Size Warehouse Size Warehouse layout,Single large warehouse for a single state. Covers all stores of a state Also has warehouse for Sams club which is a
7、 membership based store.,Facility Factor,Shop location Shop layout Shop Si z e Warehouse Si z e Warehouse layout,Data warehousing layout A networked connection with store inventory with suppliers for inventory supply when needed.,Product and Service Factor,Price Sales Suppliers,Every day low price.
8、Lower price than competitors (price leadership). Lower price due lower operational cost.,Product and Service Factor,Price Sales Suppliers,Net Sales of walmart in 2009-2010 Wal-Mart U.S. $2 58.2 billion Sams Club $ 46 .7 billion Wal-Mart International $ 100.1 billion Worldwide Total $ 405 billion,Pro
9、duct and Service Factor,Price Sales Suppliers,Partners with more than 2,5 0 0 minority-and women-owned business suppliers. Networked communication & Just In Time .,Human Resource Factor,Number of employees Age, Gender and sexual orientation Skill Wages,2.1 million employees all over the world 1.4 mi
10、llion employees only in U.S. Largest privet employers in US, Mexico & Canada.,Human Factor,Number of employees Age, Gender and sexual orientation Skill Wages,869000 women working in Wal-Mart. More than 430,000 employees are 50 and over.,Human Factor,Number of employees Age, Gender and sexual orienta
11、tion Skill Wages,Both Skilled and low skilled employees. Employs senior citizens who needs supplemental income. Employs Students who needs skill and experiences.,Human Factor,Number of employees Age, Gender and sexual orientation Skill Wages,Hourly wage rate. Wage of $ 1 2 per hour for semi skilled
12、employees. Higher wage rate for skilled employees and in urban outlets. Bonus on performance.,SUPPLY CHAIN MANAGEMENT,“ Supply chain management involves the flows of material, information and finance in a network consisting of customers, suppliers, manufacturers, and distributors”,Just in time (JIT)
13、,Lowers holding cost Lowers ordering cost Wal-Mart has made ordering small batches with greater frequency a profitable reality.,RFID,RFID,Radio frequency identification Keep track of goods at any point in time, and also tells you where it is. Eliminates physical counting of inventory Is in line wit JIT. As soon as inventory levels go down, Walmart can re-order. Implemented in 2 0 0 5.,RECOMMENDATION,Get employees from places where labor is cheap. Increasing wage rate for employees Keeping high quality products. Should focus on service along with lower price.,
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