Advanced Inventory Management

Understanding Materials Forecasting And Inventory Management

• Definition and scope of inventory management
• Business conditions and financial implications of inventory
• Inventory in the supply chain including the effects such as the ‘Bull Whip’ principle
• Planning versus Forecasting
• Delivery promise

Current Demand Systems

• Dependent demand systems
• MRP
• Seasonal volume prediction
• Problems that can occur with MRP systems
• Re-order point
• Economic Order Quantity (EOQ)
• Periodic review systems
• Kanban

Fundamental Key Steps In Managing Inventory

• ACB classification
• Utilising pareto
• Different ways to classify inventory
• Service levels
• Safety stocks
• Redundant stock and it’s removal

Inventory Management And Performance Measuring Tools

• Inventory measurements
• Common events that create inventory inaccuracy
• Cycle counts
• Net variances versus absolute variances
• Aids to improve inventory accuracy
• Barcoding

Forecasting

• Understanding demand behaviour and characteristics of inventory
• Forecasting techniques
• Sales & operations planning
• Evaluating forecasting accuracy
• Understanding forecasts and managing key relationships within the supplier customer cycle

Forecasting Models And Systems

• Various models to consider
• ERP systems

Considerations For Supply Chain Strategy For Inventory

• Inventory focus
• Who is responsible in the business?
• Different views of inventory
• Strategic inventory decisions

Financial Implications

• Inventory velocity: turns ratio
• Carrying cost (inc. effect on margin, implications if slow moving stock)

Inventory Reduction

• A series of steps to be outlined for course participants to follow

Improvement Plans For Inventory Management

• Root Cause Analysis methods
• KPI creation and management
• 5S

All participants will create their own action plan to go back into the workplace with and the tools to make a real difference!

New Skills You Will Learn

• How to Enhance your forecasting process
• How to determine which inventory management system works best for your organisation
• How to Eliminate dead stock and get slow-moving inventory out the door
• Keeping inventory management costs down and find out why effective logistics management is vital to the company’s competitive advantage
• How to create a cycle-counting programme that could eliminate your annual inventory
• Improving operations’ efficiency, reduce waste and meet the challenges of global competition