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
