Basics of Inventory Management

Description:

The course was designed to cover critical business and professional development topics in the shortest time possible. With a wealth of hands-on exercises, the course keeps you engaged and help you retain critical skills.

This course contains a logistics approach to inventory management — from the warehouse through the distribution system, from the supplier to the customer. Made for managers, it outlines objectives and performance measures pertaining to customer service, inventory investment, and operational efficiency. Factors affecting inventory are fully discussed and warehouse environments are fully explored, including types and objectives, packaging, material handling, and costs involved.

Duration: One day

Table of Contents:

Introduction

Module 1: Inventory Objectives and Policies
What Is Inventory Management?
Handling Conflicting Objectives
Inventing Categories
Types of Inventory

Module 2: Independent Demand Inventory Systems
Inventory Information Systems
Independent Demand Models
Environments and Their Effects on Inventory Management
Order Cycles and Lead Times

Module 3: Inventory Management Tools and Techniques
Forecasting and Determining Inventory Levels
Essential Calculations (EOQ)
The 80/20 Rule (ABC Analysis)
Determining Other Costs
Lot Size and Safety Stock

Module 4: Inventory Management and Financial Analysis
Financial Control of Inventory
Balance Sheet Basics
Income Statement Basics
The Basic Manufacturing Equation
Key Financial Ratios
Identifying Suppliers with Potential Cash-Flow Problems
Costed Bill of Materials
Allocation of Factory Overhead and Activity-Based Costing

Module 5: Physical Controls: The Warehouse Environment
Objectives of Warehousing
Picking, Packing, and Shipping
Costs of Warehousing
Setting Up a Warehouse System

Module 6: Distribution Inventory Planning and Control (Logistics)
Delivering Products
Types of Distribution Systems
Forecasting Stockkeeping Units (SKU) Requirements
Integrating Distribution and Manufacturing Systems
Just-in-Time (JIT) in a Distribution Environment

Answers to Exercises