Inventory Control

Fundamentals of Inventory Management

Overview

In this comprehensive program, you will learn the core functions of inventory management and its impact on the bottom line. Analyze and discuss ways to implement various order processing and distribution tools for more accurate measurement of inventory performance and improved forecasting. Examine inventory systems, software and other technology that maximizes your ability to effectively manage inventory dollars to improve cash flow. Evaluate cost controlling mechanisms that can be customized to your organization.

You Will Learn

• The basic principles and functions of inventory
• The financial implications of inventory
• How to account for inventory value
• How to manage an inventory
• How to measure inventory performance
• How to control inventory accuracy
• About the different types of inventory systems
• What is important in the customer service aspect of inventory
• The implications of inventory disposal

Course Outline

1. Basics and functions: Purpose of inventory, objectives of inventory control, inventory classifications/categories and types of stock, physical location, inventory policies
2. Financial implications: Working capital, cash flow, asset vs. expense, inventory valuation, FIFO, LIFO, average cost, market value
3. Costs of inventory: Carrying costs, ordering costs, stock-out costs, labor costs
4. Warehousing: Site selection, costs, layouts, receiving, locator systems
5. Management: Planning and replenishing, economic order quantity (EOQ), Pareto analysis, ABC concept, setting stock levels, forecasting, order cycles and lead times, safety stock, inventory shrinkage, stock rotation, shelf life
6. Ordering processes: Standardization, single sourcing, supplier partnerships, using distribution channels vs. buying direct
7. Capacity issues: Seasonality, contingency plans, process variation, disaster planning, unusual event occurrence
8. Inventory performance: Turn-over rates, service levels, customer service issues
9. Accuracy: Perpetual vs. periodic physical counts, cycle counts, audits, reconciliation procedures, employee training
10. Distribution: Order picking, remote inventories, pull/push systems
11. Disposal: Reasons for disposal, surplus inventory, obsolete inventory, methods of disposal, legal issues, hazardous materials
12. Inventory systems: Order-point systems, JIT, JIT II, Kanban, stockless/low unit of measure (LUM), supplier managed, consignment, point of sale/use, open stores, closed stores, random access, MRP
13. Inventory software: Selection, implementation, custom reporting
14. Technology: Bar codes, RFID

Who Should Attend

Supply management professionals and others with responsibility for inventory investments and supply, inventory and other professionals who would benefit from an understanding of inventory control concepts.