COURSE OBJECTIVES
 
To develop understanding of current best practice in inventory management.
 
 
COURSE CONTENTS
 
Day 1
 
Definitions of inventory
The purposes of inventory
Why manufacturers, asset builders, retailers and distributors hold inventory
 
The cost of holding inventory
Where does inventory lie in the supply chain?
Demand amplification in the supply chain and its effect on inventory cost
Models for evaluating the true cost of inventory in a manufacturing business
 
Using ABC analysis to understand inventory holdings
Undertaking ABC analysis of different types of inventory
 
Independent demand planning
The use of fixed lot ordering systems to manage independent demand items
Defining Reorder point control
Setting the reorder quantity, reorder level, and safety level and service level
The economic order quantity theory
How fixed lot ordering systems are deployed in practice
 
Day 2
 
Dependent Demand Planning
Using Manufacturing resource and requirement planning (MRPI & II) to manage dependent demand requirements in the batch-building environment
 
How MRPI works
Stock records
Bills of materials
Order set up mechanisms
Setting up the master schedule
How to implement MRP successfully
Common difficulties for implementers
Contract costing approaches
Configuration control
Dealing with reject and quarantine materials
 
How MRPII works
How to implement it successfully
Common mistakes made by implementers
 
The development of ERP as an adjunct to MRP
JIT in the batch-building environment
Contemporary approaches to driving inventory out of the supply chain
Lean Supply
Mass customisation, JIT, KanBan, Supply Chain Integration