Approaches to Inventory Management

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Course duration: 2 Day

Course Running Order

Objectives of inventory control and materials management

The holding costs of inventory

Total cost of ownership models of stock holding
Stock valuation systems (FIFO, LIFO etc)
Stock checking and perpetual inventory management systems

Aggregate inventory management

Stock categorisation,
Applying ABC analysis, rationale, methodology, other classification characteristics
Managing critical and ‘must have’ parts with special characteristics

Dependent demand inventory management techniques

What is dependant and independent demand
MRP I and II
JIT (including Kanban)
EDI / E-commerce techniques for inventory control

Independent demand stock control models

Re-order point control model for managing MRO items
Fixed quantity, variable interval systems.
Using the Economic order quantity and economic batch quantity models to determine stock levels
Fixed interval variable quantity systems (scheduling systems)
Stock levels and IT

Determining and managing customer service levels

Understanding customer satisfaction and service requirements throughout the supply chain
Statistical methods for determining safety stock and service level

Inventory reduction techniques

The main reasons for holding stocks
An overview of techniques to remove the obstacles to inventory reduction
Consignment stocking
Pipeline inventory stocking
Vendor managed inventory
Direct to line supply

The role of purchasing in inventory reduction

Lead time management and reduction
The flywheel effect of “pull” operations
Supportive supplier relationships
Paying attention to logistics

Course objectives

To develop understanding of current best practice in inventory management.
Attendees will gain an overview of inventory management and its importance in modern day supply chain management approaches. They will recognise the impact of inventory on operational costs and have a sound understanding of the main techniques used by organisations to minimise this impact whilst preserving world class levels of service

Who should attend?

Delegates from inventory rich environments with responsibility for managing inventory and for setting up inventory reduction programmes.

Duration / Fees

A 2-day single manned course

Can be run over a two or three week cycle – simply ask when booking

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