INVENTORY PLANNING AND STOCK CONTROL

INVENTORY PLANNING AND STOCK CONTROL

Objectives:

By the end of the program, participants will be able to:

• List the objectives of inventory management and its impact on cost and customer service.
• Perform proper classification of inventory and use best practices for item specification/cataloguing.
• Use forecasting techniques to predict demand and better manage lead times.
• Identify the optimum ordering quantity and determine safety stocks and reorder points.
• Conduct cycle counts, improve inventory record accuracy, and find ways to reduce inventories.
• List various techniques to reduce inventory, including JIT (Just-In-Time).
• Apply Key Performance Indicators (KPIs) to measure and improve inventory performance.

Course contents:

Introduction to Inventory Management

• Objectives of Inventory Management
• Reasons to Hold Inventory
• Inventory Information System Considerations
• Identifying Inventory Costs
• Customer Service in Inventory Management

Description and Classification of Inventory

• Types of Inventory
• The ABC Inventory Classification
• Uses of the ABC Ranking
• Materials Specifications/Cataloguing

Forecasting Demand and Lead Time

• Dependent versus Independent Demand
• Factors Affecting Demand
• Factors Impacting Forecast Accuracy
• Time-Series Forecasting Methods
• Lead Time Management
• Moving Average
• Exponential Smoothing
• Seasonal Demand
• Lead Time Management

Inventory Systems

• Inventory Holding and Ordering Costs
• The Economic Order Quantity Model
• Dealing with Quantity Discounts
• Objectives of Safety Stocks
• Setting Safety Stocks
• Determining the Reorder Point

Counting and Controlling Inventory

• Causes of Inaccurate Inventory
• Requirements for Accurate Inventory Records
• Reporting Record Accuracy
• Periodic and Cycle Counting

Reducing Inventory Investment

• Identification and Disposal of Surplus
• Just-In-Time (J.I.T.) Method

Measuring Inventory Management Performance

• Reasons for Poor Inventory Management
• Key Performance Indicators and Targets
• Qualities of the Inventory Specialist

Who will benefit?

Those involved in inventory (materials) planning and stock control at the operational and supervisory levels. Also, those working in other functions of materials management (purchasing, stores, distribution) who need to understand the mechanics of inventory planning and stock control.