Inventory Management Techniques
- Purpose: Develop understanding of best practices in inventory management.
- Target audience: Delegates from inventory-rich environments.
- Focus on inventory purposes, costs, supply chain placement, and management models.
- Utilize ABC analysis, fixed lot ordering, and reorder point control.
- Implement MRPI & II for managing dependent demand in batch-building environments.
Overview
This 2-day course focuses on current best practices in inventory management. It covers topics such as inventory definitions, cost analysis, ABC analysis, dependent and independent demand, fixed lot ordering systems, MRPI & II, ERP, JIT, and lean supply. The course aims to help delegates from inventory-rich environments responsible for managing inventory and setting up store operations.
Who should attend
Manufacturers, Asset Builders, Retailers, Distributors
Course Content
Course duration: 2 Days
Course running order
Day 1
Definitions of inventory
The purposes of inventory
Why manufacturers, asset builders, retailers and distributors hold inventory
The cost of holding inventory
Where does inventory lie in the supply chain?
Demand amplification in the supply chain and its effect on inventory cost
Models for evaluating the true cost of inventory in a manufacturing business
Using ABC analysis to understand inventory holdings
Undertaking ABC analysis of different types of inventory
The theory of dependent and independent demand
The use of fixed lot ordering systems to manage independent demand items
Defining Reorder point control
Setting the reorder quantity, reorder level, and safety level and service level
The economic order quantity theory
How fixed lot ordering systems are deployed in practice
Day 2
Using Manufacturing resource and requirement planning (MRPI & II) to manage dependent demand requirements in the batch-building environment.
How MRPI works
Stock records
Bills of materials
Order set up mechanisms
Setting up the master schedule
How to implement MRP successfully
Common difficulties for implementers
Contract costing approaches
Configuration control
Dealing with reject and quarantine materials
How MRPII works
How to implement it successfully
Common mistakes made by implementers
The development of ERP as an adjunct to MRP
JIT in the batch-building environment
Contemporary approaches to driving inventory out of the supply chain
Lean Supply
Mass customisation, JIT, KanBan, Supply Chain Integration
Course objectives
To develop understanding of current best practice in inventory management.
Who should attend?
Delegates from inventory rich environments with responsibility for managing inventory and for setting up stores operations.
Duration / Fees
A 2-day single manned course
Can be run over a two or three week cycle – simply ask when booking
