Shin, S., & Tucci, J. E. (2015). Wal-Mart's Dilemma in the 21st Century: Sales Growth Vs. Inventory Growth

Document Type

Article

Publication Date

2015

Department

School of Business

Abstract

Wal-Mart has been a leader in the retail industry since 1980s. In the 21st century, Wal-Mart’s RFID initiative is another innovation for Wal-Mart’s supply chain management. Wal-Mart’s recent business target in the 21Century is making a higher sales growth rate than inventory growth rate. Comparing with financial ratios of Wal-Mart’s 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.

First Page

37

Last Page

45

Volume

31

Issue

1

ISSN

08927626‎, 21578834‎

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