Comprehensive Administration of Inventories
Objectives:
- To improve the inventory management methodology.
- Learn how to stratify inventories.
- Understanding how to evaluate inventory
Intended for:
- Personnel involved with inventory management.
At the end of the course:
- The participant may manage inventories appropriately.
- The participant will know how to evaluate an inventory.
- Participants will learn how to calculate inventory costs.
Module 1: Introduction to Inventory Management.
Understand what inventory is and how it should be managed.
- Introduction to Supply Chain and demand management.
- What is an Inventory?
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- The aims of inventory management.
- Basic concepts of inventory management.
- Purpose of the inventory.
- Types of items in inventory
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- Inventory Models by Form.
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- Raw materials.
- Product Finished.
- Product in process.
- MRO.
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- Inventory models as per their function.
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- Anticipation Inventory.
- Safety Stock.
- Inventories by batch size.
- Transport inventory.
- Buffer inventory.
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- Inventory management costs.
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- Order costs
- Storage costs
Module 2: Introduction to Inventory Management. (cont.)
Understand what inventory is and how it should be managed.
- Inventory in Monetary Terms.
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- FIFO
- LIFO
- Average cost
- Specific cost.
- Standard cost.
Module 3: Inventory Stratification.
We'll know about ABC's inventory classification methodology.
- ABC (80-20) classification.
- Physical location of inventory.
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- Types of location systems.
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- Memory systems.
- Fixed location systems.
- Zoning systems.
- Random location systems.
- Combined systems.
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- Keys to effectively linking stockkeeping units with the addresses of location.
Module 4: Inventory Stratification. (cont.)
We'll know about ABC's inventory classification methodology.
- Resupply method.
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- Identification of inventory policies.
- Safety Stock Calculation
- Inventory model for independent demand.
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- Reorder point.
- Maximum and minimum.
- Economic order quantity.
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- Inventory model for dependent demand.
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- Materials Requirement Planning (MRP)
- MRP II system.
- Just in Time.
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- Supply sources.
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- Strategic Procurement
- Tactical Procurement.
- Supply risk and financial impact matrix.
- Determining order quantities in an environment of rising prices or speculation.
Module 5: Measuring Inventory Management.
Learning how to properly evaluate the inventory.
- Performance Indicators of the Inventory Management System.
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- Inventory discrepancies.
- Loss Control.
- Warehouse usage.
- Shortages.
- Rotation.
- Inventory count types.
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- Test count.
- Total inventory.
- Annual inventory.
- Cyclic inventory.
- Cycle Counting Methods.
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- Control point.
- Localization audit.
- Random Selection.
- A decline in population.
- Product categories.
- ABC classification.
- Information necessary for the inventory.
- Accuracy in inventory records and the impact of poor inventory management.
Module 6: Lean Philosophy for Improving Inventory Management.
Know the tools and methodologies that Lean Philosophy provides for improvement and optimization inventory.
- Introduction to Lean Philosophy.
- The 5's, the principle of excellence.
- Inventory management through Kanban.
- PNC management policies.