Inventory Management Techniques

Inventory Management Techniques: Planning, Replenishment and Activities Control

These inventory management techniques will improve your inventory turnover ratio and transform frozen assets into cash!

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.

Cutting-edge inventory management techniques deliver results that go far beyond initial expectations. Explore the latest inventory management methods for saving money, satisfying customers and speeding up the flow of inventory. Learn how to take days—not hours—out of the manufacturing and distribution cycle. Discover how to apply today’s most exciting stockless production techniques.

How you will benefit:

• Identify strategies for reducing inventory investments while optimizing responsiveness to customer needs
• Discover techniques for making scheduling and shop loading more efficient
• Determine tactics for narrowing the sales and stock replenishment gap
• Fine-tune your record keeping capabilities
• Improve the effectiveness of cycle counts and physical inventories

What you will cover:

• Developing an effective inventory management strategy
• Identifying and establishing optimal inventory levels
• Forecasting and demand management tools
• Inventory planning and replenishment systems: order point, MRP, MRP II
• Managing, measuring and reporting inventory accurately
• Distribution Resource Planning and warehouse management
• Tactics for eliminating excess and obsolete stocks
• Lead time analysis and reduction techniques
• Just in Time philosophy and its applications

Course Outline:

Learning Objectives

• Understand the Strategic Purpose of Inventory the Processes Used By the Material Management Function to Align with the Internal/External Goals of the Firm
• Learn About the 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 Areas 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 Level 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
• Learn How to Use Techniques to Predict Demand Levels and How to Calculate Optimum Inventory Levels to Meet Demand
• Learn How to Plan and Schedule Replenishment of Inventory to Support Manufacturing/Distribution Operations That Meet the Bottom Line and Enhance Customer Satisfaction
• Learn How to Measure and Report Inventory to the Firm’s Internal Customers
• Learn How Inventory Accuracy Is Improved and About Techniques to Efficiently Report Inventory Information
• Learn About Tools to Forecast Demand and Ways to Increase the Material Manager’s Ability to Understand the Needs of the Firm’s Customers
• Understand the Impact of Inventory Throughput on Supply Chain Efficiency
• Learn About the Different Strategies Used to Manage Bottlenecks and Constraints That Decrease the Amount of Inventory and Lead Time for Materials to the Firm
• Learn How to Reduce the Cost of Inventory Obsolescence
• Learn the Principles of Just-In-Time and Practice with Others on your Team to Improve the Management of Inventory in a Hypothetical Firm

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 a Firm
• Build an Inventory Management Strategy That Is Consistent with the Goals of the Firm
• Learn the Proper Measurements for Inventory and Other Associate Costs Within a Company

Front-End Optimizing of Inventory Levels

• Set the Optimum Inventory Level to Support the Business Plan of the Firm
• Forecast Demands for Inventory
• Calculate Demands from Forecasting Models
• Assess the Impact of “Lean” Systems and Throughput Velocity
• Develop a Safety Stock Level to Support Customer Requirements That Is Consistent with the Customer Service Objectives of the Firm
• Calculate Safety Stock Using the Mean Absolute Deviation

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 (TCOP)
• Complete an Exercise to Calculate Replenishment, Illustrating the Bill of Materials Setback Logic and the Materials Requirements Planning (MRP) Method

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 Online Inventory Access for Customers and Suppliers

Distribution and Service Inventories

• Define 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 System 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

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 an 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

Just-In-Time and Inventory Process Improvement

• Learn How JIT Systems Fit in Your Company
• Complete a JIT Simulation Exercise
• Learn More Business Strategies for Inventory
• Understand Flowcharting and Inventory Balancing