Question

The key objective of Walmart's Must-Arrive-By-Date policy is to do which of the following?

a) reduce average lead times
b) reduce lead time variability
c) reduce average demand
d) reduce demand variability

Answer 1

Walmart's Must-Arrive-By-Date policy is aimed at reducing lead time variability to ensure consistent stock levels and improve inventory management.

Step-by-step explanation:

The key objective of Walmart's Must-Arrive-By-Date policy is to reduce lead time variability. This supply chain management approach is designed to ensure that products arrive at the stores just in time to be replenished as they are sold, which maximizes efficiency and maintains consistent stock levels. By reducing the variability in delivery times, Walmart can better predict inventory needs and minimize the risk of stock-outs or excess inventory.