P-E Corporate Services SA (Pty) Ltd Management Consultants

Inventory Management

 

A two-day course for Inventory Managers, Materials Managers, Inventory Controllers, Stores and Warehouse Managers and. anyone who wants to improve the performance of their inventory investment

This programme has been designed to provide delegates with a good understanding of inventory management, and the techniques used to manage inventory.

 

Not only will delegates learn the techniques, they will also learn the pitfalls associated with using these techniques. With this knowledge they will be able to review their own inventory management practices and identify areas for improvement. They will understand that inventory is a waste and that every endeavour must be made to reduce it to the absolute minimum.

 

 This programme will provide delegates with the knowledge to:

 

Forecast the demand for their inventory items and track the accuracy of the forecast

Analyse and classify their inventory items into manageable groupings

Calculate the order quantity requirements for their inventory items

Decide on the re-ordering tools to use for the various items

Establish the triggers for placing orders

Understand the factors that determine safety stock and the influence that safety stock has on

customer service and investment

Distinguish between dependent and independent demand items and understand which techniques apply to which situation.

 

Course Content

 

Inventory Management in Perspective

• The purpose of inventory
• Inventory functional groupings
• The objectives of inventory management
• Rules for achieving the inventory management objectives
• Demand Forecasting and Variability Analysis
• Forecasting in inventory management
• The components of demand
• Quantitative and qualitative forecasting techniques
• Forecasting technique selection
• Determining the validity of the forecast

Analysing and Classifying Inventory

• Inventory groupings
• The ABC Analysis
• Uses of the ABC Analysis
• Dangers associated with the ABC Analysis

The Economic Order Quantity

• The relationship between order size and inventory levels
• Cost categories influencing the order size
• The Economic Order Quantity
• Considerations in using the Economic Order Quantity

The Timing of the Order

• Dependent and independent demand
• Traditional techniques used for timing the order
• Technique selection guide

An Understanding of Safety Stock

• The reasons for holding safety stock
• The variables that determine safety stock
• The objectives for setting safety stock
• The factors used to set safety stock levels

An Appreciation of Materials Requirements Planning

Problems with traditional re-ordering techniques

The components of MR

The MRP ‘process’

The potential benefits and implementation pitfalls of MRPv

 

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