Question

Analyze the factors that impact the costs of production of Walmart’s main product (inventory)

Answer 1

There are all sorts of products available in Walmart. some of them are Walmart brand and some are the venture products. so it is a well organized and settled business model following the perfect strategy for its operation. now the question is based on the factors that affect the cost of production of Walmart. Here it has been clearly explaining the cost of all such kinds of products and the factors that affect it is difficult to define, but it can be presented through the cost of inventory and the affecting factors.

1. Any of the product or the inventory is majorly affected by the finance-related factors. it affects the volume, quality, popularity, advertizement, and other major popularity and the management of inventory. It includes all sorts of expenses related to the product and inventory.

2. supply of the product is another factor that affects the inventory. if the supplier is efficient, negotiable, and favorable then the cost of inventory will be less as there is no need for stocks and with timely supply, demands can be manageable.

3. strategy also another important factor that affects the inventory. it will take care of the maximization of productivity of inventory and minimization in the cost of inventory.

4. product verity also affects the inventory. if the product is a durable good it will require less cost where the perishable products will take more inventory cost.

5. Managing the human factor is another challenge for the inventory.it is not directly affect the inventory but indirectly affects a lot on inventory management. if there is no good synchronization between different levels of worker then the inventory might be facing losses.

6. External factor are those factors like political stability, market condition, weather condition and other external factors which really have a greater impact on the efficine tperformance of inventory.