**Introduction:** In this paper, you are tasked with analyzing the current supply chain management practices of WALMART Company and proposing strategies for optimization. As a supply chain management consultant, your objective is to identify key challenges, recommend improvements, and develop an action plan to enhance the overall efficiency and effectiveness of the supply chain. **Task 2: Key Challenges in the Supply Chain** 2.1 Demand Forecasting: - Assess the accuracy of demand forecasting methods currently employed by WALMART Company. - Identify challenges and issues related to demand forecasting leading to either overstocking or stockouts. 2.2 Communication Gaps: - Identify communication gaps within the supply chain and between stakeholders. - Evaluate the impact of poor communication on decision-making and response times. 2.3 Transportation Cost: - Analyze the factors contributing to rising transportation costs for WALMART Company. - Highlight areas where transportation expenses can be optimized. 2.4 Inventory Holding Costs: - Calculate the inventory holding costs incurred by WALMART Company. - Suggest strategies to reduce inventory holding costs without compromising on customer service.