Inventory Management Techniques: Planning, Replenishment and Activities Control

Optimize your inventory turnover ratio and unlock capital trapped in excess stock through proven inventory management techniques.

Who Should Attend:

Professionals working in factory operations and inventory control, production and manufacturing management, industrial engineering, plant management, materials and purchasing, factory administration, and customer or technical service roles who seek to strengthen their inventory management capabilities.

Modern inventory management techniques deliver substantial outcomes that frequently surpass initial projections. Investigate the most current approaches for inventory management that help reduce costs, increase customer satisfaction, and accelerate inventory circulation. Master how to compress timeframes in the manufacturing and distribution cycle. Learn cutting-edge methods for stockless production and their practical applications.

How You Will Benefit:

• Develop approaches to lower inventory spending while improving your ability to respond to customer demands
• Master techniques that enhance efficiency in scheduling and shop floor operations
• Apply methods to minimize the gap between sales activity and stock replacement cycles
• Strengthen your systems for documenting and maintaining accurate records
• Enhance how you conduct cycle counts and complete physical inventory procedures

What You Will Cover:

• Creating effective inventory control and management frameworks
• Determining and implementing ideal inventory quantities
• Using demand forecasting and planning models
• Inventory planning strategies, including order point approaches, MRP, and MRP II systems
• Methods for controlling, tracking, and documenting inventory with precision
• Warehouse management and Distribution Resource Planning tools
• Approaches to handle unwanted and slow-moving inventory
• Methods for analyzing and shortening lead times
• Just-in-Time concepts and real-world implementation

Course Outline:

Learning Objectives

• Understand Inventory's Strategic Importance and the Processes the Material Management Function Uses to Align with Company Goals Both Internally and Externally
• Explore Inventory Management Policies and Procedures That Create the Controls and Financial Reporting Requirements Needed by Organizations
• Understand How Materials Managers and Analysts Support Internal Customers and Surpass Their Requirements and Expectations
• Learn the Key Competencies of the Materials Management Function, the Information Required to Actively Handle and Manage the Inventory Cycle, Supply Chain Operations, and How to Best Address Customer Demand
• Learn to Identify and Assess Factors That Impact the Risk of Supplier Inventory Carrying Costs
• Learn About Inventory Trends and Forecasting Models Organizations Use to Estimate Inventory Demand
• Learn About the Methods to Organize Inventory Replacement to Meet the Service Standards of the Business and Its Customers
• Understand How Inventory Levels Relate to Service Quality and How to Establish the Service Level Your Organization Requires to Achieve Specific Customer Satisfaction Goals
• Learn to Establish an Inventory Safety Stock Level That Aligns with Your Organization's Overall Strategy
• Learn to Build Information Systems That Support Your Organization's Inventory Management Goals
• Learn About Inventory Metrics and How to Monitor Them to Better Control Inventory Performance
• Learn to Use Forecasting Methods to Predict Demand and How to Establish Ideal Inventory Quantities to Satisfy Demand
• Learn to Plan and Schedule Inventory Replacement to Sustain Manufacturing and Distribution Operations While Improving Profitability and Customer Satisfaction
• Learn to Track and Report Inventory to Your Organization's Internal Customers
• Learn How to Boost Inventory Accuracy and About Methods to Effectively Maintain Inventory Information
• Learn About Demand Forecasting Tools and Methods to Build Materials Managers' Understanding of Customer Needs
• Understand How Inventory Movement Affects Supply Chain Productivity
• Learn About the Various Approaches to Handle Constraints and Bottlenecks That Slow Inventory and Materials to the Organization
• Learn How to Minimize Inventory Waste and Obsolescence Expenses
• Learn the Foundations of Just-In-Time and Apply These Concepts Alongside Your Team Members to Improve Inventory Performance in a Realistic Situation

The Strategic Role of Inventory Management

• Understand the Purposes of, and the Processes Used for Inventory Management to Support Operations and Meet Customer Requirements
• Identify the Typical Competing Goals of Inventory in Organizations and Their Effect on Business Performance
• Learn the Key Competencies of the Materials Management Function to Actively Handle, Understand, and Manage the Inventory Cycle and Supply Chain Activities of an Organization
• Create an Inventory Management Strategy That Supports the Organization's Strategic Objectives
• Learn the Appropriate Metrics for Inventory and Other Related Expenses Across an Organization

Front-End Optimizing of Inventory Levels

• Establish the Ideal Inventory Level to Back the Business Strategy of the Organization
• Project and Anticipate Inventory Demand
• Use Forecasting Models to Determine Demand Quantities
• Evaluate the Consequences of "Lean" Approaches and Material Flow Velocity
• Build a Safety Stock Quantity to Satisfy Customer Needs That Works with the Customer Service Strategy of the Organization
• Figure Safety Stock Using the Mean Absolute Deviation Method

Systems for Inventory Planning and Replenishment

• Learn About the Different Types of Replenishment Methods Used in Various Business Environments
• Understand How Inventory Behaves and the Effect of Order Quantities on Average Inventory
• Learn How Order Quantity and Lead Time Work Together to Impact Inventory Levels
• Learn How to Handle Extra and Obsolete Inventory and the Associated Costs to the Organization, and Other Methods to Lower Inventory Spending
• Complete a Calculation Exercise for Inventory Replenishment Using the Time-Phased Order Point Method (TCOP)
• Complete a Calculation Exercise for Replenishment, Showing the Bill of Materials Decrease Logic and the Materials Requirements Planning (MRP) Technique

Automating Order Processes

• See How Costs, Order Quantities, and Inventory Change When Order Costs Are Computerized
• Learn About Supplier Managed Inventory Models
• Explore the Advantages of Consignment and Stocking Arrangements
• Investigate the New Options of Internet-Based Commerce
• See How Surplus Inventory Liquidators Can Help
• See How a Third-Party Logistics Partner Can Help
• Review Web-Based Inventory Information for Buyers and Vendors

Distribution and Service Inventories

• Define Physical Distribution, Logistics Management, Supply Chain Operations, and Demand Planning
• Define Enterprise Systems for Coordinated Inventory Planning
• Learn How to Lower Inventory Carrying Costs Via Warehouse Layout, Design, Efficient Operations, and Inventory Location Systems
• Define Distribution Resource Planning (DRP) and Learn How to Apply DRP Methods to Stock Inventory at Distribution Locations
• Complete a Calculation Exercise on DRP Requirements for a Realistic Distribution Center to Satisfy Business Needs
• Define the Significance and Role of Managing Service Parts

Inventory Accuracy and Audits

• Understand the Foundational Requirements for Inventory Operations and Quality
• Analyze the Advantages of Physical Inventory Versus Continuous Cycle Counting
• Learn the Actions Necessary to Start with Continuous Cycle Counting to Verify Inventory on a Rolling Basis
• Learn About the Actions to Take When Performing a Work-in-Progress Inventory Check
• Learn How to Use A-B-C Analysis to Find, Recognize, and Manage Common Sources of Discrepancies in Inventory Reporting
• Set Reasonable Inventory Accuracy Objectives for Your Organization

Just-In-Time and Inventory Process Improvement

• Learn How JIT Methods Work in Your Organization
• Complete a JIT Simulation Activity
• Learn More Organization Strategies for Managing Inventory
• Understand Process Mapping and Inventory Equilibrium