Managing Inventory Effectively
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This 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 needed changes to methods to improve customer service whilst achieving reductions in inventory eliminate wasteful costs; avoid internal problems that limit performance; obtain added value for money.
At the end of the course participants will be able to:
- Understand the use of inventory throughout the supply chain.
- Develop inventory strategies to support business strategies.
- Analyze tradeoffs between inventory costs and customer service levels.
- Determine how to measure and improve inventory performance.
- Understand and manage variability that impacts inventory.
- Evaluate how to tradeoff transportation and inventory costs.
- Determine how to optimize inventory levels to meet service requirements.
- Understand the basics of inventory and forecasting technology.
Session 1 - The Supply Chain
The Supply chain definitions, history and key aspects
- History and development
- Key aspects
- Befits of supply chain approach
Relationships and material flows in the chain
- Integrating the supply chain
- Customer service
- Adding value
- Power of information
- Sharing and collaboration in the supply chain
Session 2 - Products & Stock
- 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 stock?
- Inventory costs
- Service levels from inventory
- Cost/service trade offs
- Understanding Lead time
- Lead time variability and uncertainty
- Inventory and statistics
Session 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
Session 4 - Forecasting & Stock Control
- 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
- Checklists to help on deciding the best option
- Stock Recording
This session looks at stock recording, a 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?
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
- Job Descriptions
- Authority levels
- Tolerances and approvals
- The programme
- Reconciliation’s /discrepancies
Session 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
## Course Methodology
A variety of methodologies will be used during the course that includes:
- (30%) Based on Case Studies
- (30%) Techniques
- (30%) Role Play
- (10%) Concepts
- Pre-test and Post-test
- Variety of Learning Methods
- Case Studies and Self Questionaires
- Group Work
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
- Owners, operators and Directors of companies who hold stock and inventory