Inventory Management Techniques
Who Should Attend
Factory and inventory control professionals, manufacturing and production control managers, industrial engineers, plant managers, material and purchasing managers, factory superintendents and customer/technical service managers who can benefit from enhancing their inventory management techniques.
Our Mutual Objectives
- Understand the Strategic Purpose of Inventory, and the Processes Used By the Material Management Function to Align with the Internal/External Goals of the Firm
- Learn About Inventory Management Policies and Procedures That Establish the Reporting and Financial Controls Required By a Firm
- Understand the Role Played By the Materials Manager/Analyst in Meeting and Exceeding Internal Customer Requirements and Expectations
- Learn the Critical Area of Expertise Required of the Materials Management Function, the Knowledge Base Needed to Proactively Perform, Understand, and Manage the Inventory Cycle/Supply Chain of the Firm, and to Best Respond to Customer Demand
- Learn How to Ascertain and Analyze Factors That Affect the Supplier Risk of Carrying Inventory
- Learn About Inventory Patterns and Models Used By Firms to Predict Demand for Inventory
- Learn About the Strategies to Plan Replenishment of Inventory to Meet the Service Requirements of the Firm and Its Customers
- Understand the Connection Between Inventory and Service and How to Calculate the Service Level Required By Your Firm to Meet a Certain Customer Satisfaction Level
- Learn How to Set an Inventory Safety Stock Level That Fits the Strategy of Your Firm
- Learn How to Design Information Systems to Support Your Firm’s Inventory Objectives
- Learn About Inventory Performance Factors and How to Measure Them to Best Manage Inventory Performance
Course Outlines
1- The Strategic Role of Inventory Management
- Understand the Purposes of, and the Processes Used for Inventory Management to Support Operations and Meet Customer Requirements
- Define the Typical Conflicting Goals of Inventory in Companies and Their Impact on Company Success
- Learn the Critical Areas of Expertise Required By the Materials Management Function to Proactively Perform, Understand, and Manage the Inventory Cycle/Supply Chain of the Firm
- Learn How to Build an Inventory Management Strategy That Is Consistent with the Goals of the Firms
- Learn the Proper Measurements for Inventory and Other Associate Costs Within a Company
2- Front-End Optimizing of Inventory Levels
- Learn About Setting the Optimum Inventory Level to Support the Business Plan of the Firm
- Learn How to Forecast Demands for Inventory
- Calculate Demands from Forecasting Models
- Assess the Impact of “Lean” Systems and Throughput Velocity
- To Develop a Safety Stock Level to Support Customer Requirements That Is Consistent with the Customer Service Objectives of the Firm
- To Calculate Safety Stock Using the Mean Absolute Deviation
3- Systems for Inventory Planning and Replenishment
- Understand the Various Types of Replenishment Techniques Used in Different Operational Environments
- Learn About Inventory Behavior and the Effect of Lot Sizes on Average Inventory Level
- Learn About the Relationship Between Lot Size and Lead Time on Inventory Levels
- Learn How to Remedy Surplus/Obsolescent Inventory and the Associated Costs to the Firm and Other Ways to Reduce Inventory Cost
- Complete an Exercise to Calculate Replenishment of Inventory Using the Time-Phased Order Point Method (TPOP)
- Complete an Exercise to Calculate Replenishment, Illustrating the Bill of Materials Set-Back Logic and the Materials Requirements Planning (MRP) Method
4- Automating Order Processes
- See the Impact on Cost, Lot Size, and Inventory Levels When Order Costs are Automated
- Learn About Supplier Managed Inventories
- Discover the Benefits of Consignments and Stocking Agreements
- Study the New Tools of Electronic Commerce
- See How Obsolete Inventory Jobbers Can Help
- See How a Third-Party Logistics Firm Can Help
- Review On-Line Inventory Access for Customers and Suppliers
5- Distribution and Service Inventories
- Define the Physical Distribution, Logistics Management (Supply Chain), and Demand Management
- Define Enterprise Resources for Integrated Planning of Inventory
- Learn How to Reduce the Cost of Carrying Inventory By Warehouse Layout and Design, Waste Elimination and Inventory Locator Systems Design
- Define Distribution Resource Planning (DRP) and Learn How to Use DRP Techniques to Replenish Inventory at Distribution Centers
- Complete an Exercise on Calculating DRP Requirements for a Hypothetical Warehouse Location to Meet Business Requirements
- Define the Value and Importance of Service Parts Management
6- Inventory Accuracy and Audits
- Understand the Prerequisites Necessary for Inventory Control and Accuracy
- Compare the Benefits of Conducting Physical Inventory vs. Cycle Counting
- Learn the Steps to Follow in Getting Started with Cycle Counting to Audit Inventory on an Ongoing Basis
- Learn About the Procedures to Follow When Doing a Work-in-Process Inventory Audit
- Learn How to Use A-B-C Analysis to Detect, Identify and Control “Typical” Sources of Error in Inventory Reporting
- Establish Meaningful Inventory Accuracy Goals for the Firm to Follow
7- Just-in-Time and Inventory Process Improvement
- Learn How JIT Systems Fit in the Firm
- Complete a JIT Simulation to Illustrate the Benefit of a JIT Systems Approach
- Learn About the Three Goals of Constraint Management Theory and How to Use Them to Improve Lead Times and Inventory Stocking Levels
- Learn About Business Strategies Such as Supplier Stocking, Pipe Lining, Consignment Inventories to Reduce Inventory Carrying Costs
- Conduct a Case Study on Implementing JIT Initiative at a Hypothetical Company
- Learn About Flow Charting and Inventory Balancing Techniques to Reduce the Amount of Inventory Required By a Firm