How to answer this Analytical/Technical interview question about Inventory Management for Mid-Level Supply Chain Manager?

What strategies do you use to manage inventory effectively?

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Supply Chain Manager

Analytical/Technical

Asked at

Walmart

Difficulty :

Medium

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Explanation

This question assesses your inventory management skills and ability to balance supply and demand while minimizing costs. Recruiters are looking for your understanding of strategies like just-in-time (JIT), safety stock, and demand forecasting. A great answer demonstrates your ability to apply these strategies effectively and achieve measurable outcomes. Avoid generic responses or failing to address the importance of data-driven decisions.

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Answer Example

I use a combination of demand forecasting and safety stock analysis to manage inventory effectively. By analyzing historical sales data and market trends, I create accurate forecasts to prevent overstocking or stockouts. In my previous role, I implemented a JIT system that reduced inventory holding costs by 20% while maintaining a 98% service level.

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