Inventory Planning and Control

Course Introduction

• Managing inventory process 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.

Course Objectives

• Plan and manage stock successfully and cost effectively using proven techniques of inventory management.
• Forecast demand and control lead time
• Classify, count and reduce inventory
• Calculate re-order point techniques
• Reduce inventory investment and surplus
• Develop Key Performance Indicators (KPIs) for the measurement and evaluation of inventory management performance

Who should attend?

• Inventory Planners & Control Personnel
• Store & Warehouse personnel
• All those who wish to know about Inventory Planning and Control

Course duration

• 5 days

Course Outlines

Day (1)

• Introduction to Inventory Management
  • Objectives and Responsibilities of Inventory Management.
  • How to involve inventory management on capital projects from start to finish?
  • The Roles, Responsibilities and Functions of Inventory planning & control.
  • The basic of inventory control
  • Reasons of the current stock
  • See how the Impact of Inventory affects on profitably
  • Customer Service in Inventory Management
    • Meeting customers’ requirements
    • Measuring Availability
    • Demand Management
  • Case Study

Day (2)

• Inventory Classification and Inventory Record Accuracy
  • Categorize inventory based on their demand characteristics
  • ABC Classification
  • Inventory classification methods
  • Inventory Specifications/Cataloguing
  • Examples and Exercises
• Stock Coding
  • The methods 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

Day (3)

• Forecasting Demand and Lead Time
  • Forecasting Objectives
  • Techniques of Forecasting
  • Quantitative Methods
  • Qualitative Methods
  • Seasonal Demand
  • Moving Average
  • Exponential Smoothing
  • Control of Lead Time
  • Evaluation of Forecasts
  • Examples and Exercises
• Excel at advanced inventory management
  • Deploy advanced inventory management tools and techniques
  • Develop formal inventory management programs.
  • Create a mobility strategy
  • Case Study

Day (4)

• Inventory Systems
  • Inventory Costs
  • The Max-Min System
  • When to Order (Re-order point)
  • How Much to Order (EOQ)
  • How to Deal with Quantity Discounts
  • Controlling Safety Stocks
  • Safety Stocks Calculations
  • Examples and Exercises
• Other Replenishment methods
  • When to order for dependent demand
  • How much to order for dependent demand
  • Materials planning (MRP and MRPII)
• Stock Checking
  • 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 as:
  • Roles and Responsibility
  • Requirements
  • Job Descriptions
  • Authority levels
  • Tolerances and approvals
  • Cycle counting: meaning, procedures, advantages and disadvantages
  • Periodic counting: meaning, procedures, advantages and disadvantages
  • Reconciliations / discrepancies

Day (5)

• Just-in-time management
  • The zero inventory philosophy
  • JIT environment
  • Advantages of JIT
  • Stock control using JIT
• Measuring Inventory Management Performance
  • Key Performance Indicators (KPIs) and Targets
  • Four stages in inventory management performance
• Course summary