Inventory Management is a course that will provide a comprehensive overview and detailed explanations about fundamental inventory control procedures and their usage. The course will also cover recent developments such as supply chain inventory management, and it will concluded by discussions about implementation and organizational aspects of inventory management.
After completing Inventory Management, students will be equipped with a basic understanding of the following:
- Develop a business perspective of inventory management and control
- Enhance his/her professional portfolio of technical skills by mastering the major concepts, terms, definitions, tools and techniques that make up an inventory system.
- Understand how inventory management is applied in various environments such as distribution, wholesale and retail.
No prior experience necessary
Students will be assigned 5 homework assignments, and 1 final exam.
Introduction to the course. Definition of inventory and purchasing. Role and objectives of inventory management in a business. The content of this phase will include:
- definition of inventory and purchasing
- role of inventory and purchases in a business
- objectives of the management for inventory and purchases
- handling conflicting objectives
- inventory categories
- types of inventory
Independent demand inventory systems: The choice of the appropriate model must be consistent with the overall business plan and objectives, and with the strategies for marketing, finance. The content of these phase will include:
- inventory information systems (MRP)
- independent demand models
- environments and their effects on inventory management
- order cycles and lead times.
Inventory management tools and techniques: Forecasting is critical to estimating future demand. This estimate may be developed by using mathematical formulas, data from informal sources or a combination of both. Forecasting is key to all aspects of a successful business-planning system. As customers place more demands and require faster deliveries, the ability to forecast as accurately as possible is essential. The content of this phase will include:
- Forecasting and determining inventory levels
- Essential calculations (EOQ)
- The 80/20 rule (ABC analysis)
- Determining other costs
- Lot size and safety stock
Inventory management and financial analysis: One of the area frequently overlooked in the preparation of inventory management professionals is their financial knowledge. At a minimum it is necessary to understand the financial ramifications of the inventory policy. The content of this phase will include:
- Financial control of inventory
- Balance sheet basics
- Income statement basics
- Identifying suppliers with potential cash-flow problems
- Costed bill of materials
- Allocation of factory overhead and activity-based costing.
Physical controls: the warehouse environment: Warehousing is intended to maximize customer service by positioning the inventory as close to the customer as possible while still impacting cost reduction, especially in the transportation area. The content of this phase will include:
- Objectives of warehousing
- Picking, packing and shipping
- Costs of warehousing
- Setting up a warehouse system
Distribution inventory planning and control(logistics): The physical distribution of products flows through a variety of geographically placed distribution points” Inventory is carried at each location based on criteria such as cost, desired customer-satisfaction level, and efficiency of the distribution operation. The content of this phase will include:
- Delivering products
- Types of distribution systems
- Forecasting stockkeeping units (SKU) requirements
- Integrating distribution systems
- Picking, packing and shipping just-in-time in a distribution environment.
This course is Instructor-led and delivered through our award-winning online Learning Management System.