• Walmart is implementing Lean principles in its inventory management.
• Requirements:
  • Calculate the Inventory Turnover Ratio for a Walmart store with annual sales of $10,000,000 and an average inventory value of $2,000,000.
  • Recommend measures to optimize inventory turnover.
  • Justify how optimizing inventory turnover aligns with Lean principles in retail operations at Walmart.
  • Present a table showing the current and optimized Inventory Turnover Ratio and their financial implications.

Metric	Calculation	Value
Inventory Turnover Ratio	Sales / Average Inventory	$10,000,000 / $2,000,000
Optimized Inventory Turnover	Increased Sales / Same Inventory	$X
Financial Impact	Reduced holding costs and improved cash flow	$Y
Impact on Income Statement	Increased gross margin and profitability	$Z