This course offers a comprehensive coverage of the storage and supply of materials from elementary principles and methods to the most sophisticated automated operations. It aims at providing real solutions to all the problems encountered by most stores staff and will assist those who wish to build a successful career in an integrated materials management function. The course is 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.
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.
Who Should Attend
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, and distribution) who need to understand the mechanics of inventory planning and stock control.
Module (01) Introduction to Inventory Management
1.1 Objectives of Inventory Management
1.2 Reasons to Hold Inventory
1.3 Inventory Information System Considerations
1.4 Identifying Inventory Costs
1.5 Customer Service in Inventory Management
Module (02) Description and Classification of Inventory
2.1 Types of Inventory
2.2 The ABC Inventory Classification
2.3 Uses of the ABC Ranking
2.4 Materials Specifications/Cataloguing
Module (03)Forecasting Demand and Lead Time
3.1 Dependent versus Independent Demand
3.2 Factors Affecting Demand
3.3 Factors Impacting Forecast Accuracy
3.4 Time-Series Forecasting Methods:
3.5 Moving Average
3.6 Exponential Smoothing
3.7 Seasonal Demand
3.8 Lead Time Management
Module (04) Inventory Systems
4.1 Inventory Holding and Ordering Costs
4.2 The Economic Order Quantity Model
4.3 Dealing with Quantity Discounts
4.4 Objectives of Safety Stocks
4.5 Setting Safety Stocks
4.6 Determining the Reorder Point
Module (05) Counting and Controlling Inventory
5.1 Causes of Inaccurate Inventory
5.2 Requirements for Accurate Inventory Records
5.3 Reporting Record Accuracy
5.4 Periodic and Cycle Counting
Module (06) Reducing Inventory Investment
6.1 Identification and Disposal of Surplus
6.2 Just-In-Time (J.I.T.) Method
Module (07) Measuring Inventory Management Performance
7.1 Reasons for Poor Inventory Management
7.2 Key Performance Indicators and Targets
7.3 Qualities of the Inventory Specialist