Course Description
Inventory Management Techniques is an intensive course for those who want to understand and implement the essential tools for managing inventory in the supply chain. Participants are shown how to evaluate procedures and make the needed changes to methods to improve customer service whilst achieving reductions in inventory; eliminate wasteful costs; avoid d internal problems that
limits performance; obtain added value for money
Course Objective
To give knowledge of effective inventory operations in the supply chain
To enable analysis & examination of current operations
To make organizational improvement
Who Should attend?
Those new to managing inventory
Those non inventory people who need to gain an awareness of the issues and key drivers of stock control operations.
Inventory, Stock, Supply Chain, Logistics, Warehouse and Distribution Supervisors/Managers
Owners, Operators
and Directors of companies who hold stock and inventory
Course Outline
Day 1- Supply Chain
The Supply chain definitions, history and key aspects
Definitions
History and development
Key aspects
Benefits of supply chain approach
Relationships and materials flows in the chain
Integrating the supply chain
Lead-times
Costumer service
Adding value
Tradeoffs
Power of information
Sharing and collaboration in the supply chain
Day 2-Products & Stock
Product classification
Supply/ demand variables
Dependant and independent demand
Patterns of demand
ABC Analysis or the 80/20 rule
Product coding
Inventory costs and service
Why hold the stock?
Inventory costs
Service levels from inventory
Cost/service trade offs
Understanding Lead time
Lead time variability and uncertainty
Inventory and statistics
Day 3- Replenishment Methods
How much stock should be held?
Stock time curve
Determining the reorder level
Determining the reorder point
Carrying Safety stock
Fixed and variable time periods
Fixed and variable order quantities
Replenishment methods for independent demand
When to order
How much to order
Economic order quantities
Two bin methods
Minimum – maximum methods
Comparing continuous review and periodic review methods
Other replenishment methods
When to order for dependant demand
How much to order for dependant demand
Materials Planning (MRP and MRPII)
For spare parts
Day 4 – Forecasting and Stock Control
Demand Forecasting
Sales forecasts
Statistical forecasts
When forecasting is easier
When forecasting is harder
Stock Coding
The method by which stock is coded is important in the overall management process, this session will examine:
Different methods
Understanding of all involved
Checklist to help on deciding the best option
Stock Recording
This session looks at stock recording, critical aspect of stock control and if done incorrectly is the source of many subsequent errors
Separation of powers
Legal issues
How do we get inaccuracies?
Stock Checking
Much time can be spent on this activity, but there are methods to both minimize the time and at the same time increase checking accuracy. This session examines such aspects
Roles and Responsibility
Requirements
Job Descriptions
Authority levels
Tolerances and approvals
The program Options
Reconciliation’s/discrepancies
Day 5- Improvements
Model for planning inventory
Managing inventory by value and by volume
Questions to ask about inventory
Model for inventory planning
What to implement now
