Objectives :

• Understand how inventory management techniques can be used in a wide variety of situations, particularly in stores where the inventory can be anything from fast moving products to slow moving spares.
• Define and discuss distribution warehousing and manufacturers' operations.
• Explore the inventory control aspects included in the courses for the DPIM, COM, DLM, CPIM and other professional and academic qualifications.
• Develop their understanding of stock control by seeing the techniques explained logically.
• Learn how inventory structuring, individual item control, forecasting and co-ordination provide the base for logistics management.
• Understand the importance of inventory & the role it plays in the profitability of the company
• Examine the most appropriate method for managing an item
• Understand the value chain in inventory management
• Apply best methods to optimise the investment in inventory
• Examine the appropriate inventory management technique for each type of item

The Contents:

Inventory in the Value Chain

• The purpose of inventory in the value chain
• Classification of inventory
• Procedure for eliminating obsolete inventory
• Pareto Law in identifying product Classification
• Location of inventory
• Using Economic Order Quantity on managing inventory order levels

Demand Planning

• Basic forecasting methods
• Customer segmentation
• Hierarchy of planning
• Aggregate planning
• Maintenance & Inventory planning meeting
• Master Scheduling

Forecasting

• Principles of forecasting
• Effect of lead time on the forecasting process
• Quantitative forecasting
• Qualitative forecasting
• Tracking forecast accuracy
• Determining safety stock

Inventory Recording

• Period stock take
• Cycle counting
• Perpetual recording
• Utilizing Bar-cades to manage inventory and movements
• The use of Radio Frequency Identification (RFID) for recording inventory movement
• Inventory accounting

Performance Measurement

• Stock turnover rate
• Customer service
• Cost of operations
• Measuring the effectiveness of your system
• How to use the measurements
• Class exercise on selective inventory management

Setting the right stock levels

• Simple assessment of review levels
• Managing lead times
• Target stock levels
• The changing role of purchasing

Modern supply practice

• Supply partnerships
• The ordering process
• Order quantities
• Purchasing processes
• Forecasting demand

Options for assessing demand

• Causes of forecasting techniques
• Methods of improving forecasts
• Historical forecasting techniques

Basic forecasting techniques

• Weighted averages
• Choosing the best forecast
• Monitoring forecasts
• Advanced forecasting methods

More forecasting tools

• Forecasting for seasonal sales
• Other methods
• Material requirements planning – an alternative to forecasting

Avoiding uncertainty

• Material requirements planning
• Master planning
• Batch sizes
• The future – inventory and logistics

The basis of the lean supply chain

• Logistics
• Review