Introduction

This course emphasizes the critical role of Inventory Management in achieving lean, efficient, and cost-effective operations. Participants will learn to optimize inventory investment while maintaining customer service levels, manage stock categories, and understand the causal link between inventory practices and overall business performance. The course addresses challenges such as excessive stock, high investment in spares, and poor availability, offering practical solutions to improve inventory control.

Key Benefits Include:

• Reduction in inventory investment
• Improved customer satisfaction
• Reduced operational costs of inventory management
• Prioritization and categorization of Stock Keeping Units (SKUs)

Course Objectives

By the end of this course, participants will be able to:

• Understand the importance of inventory and its impact on profitability
• Identify the most appropriate management methods for each inventory item
• Apply best practices to optimize inventory investment
• Understand the inventory value chain
• Select appropriate inventory management techniques for different item types

Target Audience

• Inventory Managers and Supervisors
• Supply Chain and Procurement Professionals
• Warehouse Managers
• Operations and Production Managers
• Logistics Coordinators
• Professionals responsible for stock control and inventory optimization

Course Outline (5 Days)

Day 1 – Inventory in the Value Chain

• Purpose of inventory in the value chain
• Classification of inventory
• Eliminating obsolete inventory
• Pareto Law for product classification
• Inventory location optimization
• Economic Order Quantity (EOQ) for order levels

Day 2 – Demand Planning

• Basic forecasting methods
• Customer segmentation
• Hierarchy of planning
• Aggregate planning
• Maintenance and inventory planning meetings
• Master scheduling

Day 3 – Forecasting

• Principles of forecasting
• Impact of lead time on forecasting
• Quantitative vs. qualitative forecasting
• Tracking forecast accuracy
• Determining safety stock levels

Day 4 – Inventory Recording

• Periodic stock take
• Cycle counting
• Perpetual recording systems
• Using barcodes and RFID for inventory tracking
• Inventory accounting methods

Day 5 – Performance Measurement

• Stock turnover rate
• Customer service metrics
• Operational cost measurement
• Evaluating system effectiveness
• Class exercise: Selective inventory management