Effective Purchasing & Inventory Management

Course Properties

Course date: 10-09-2017
Course End Date: 14-09-2017
Location Kuala Lumpur


Introduction:

   Inventory Management Techniques is an intensive course for those who want to understand and implement the essential tools for managing inventory in the supply chain.

.
   Participants are shown how to evaluate procedures and make needed changes to methods to improve customer service whilst achieving reductions in inventory; eliminate wasteful costs; avoid internal problems that limit performance; obtain added value for money.

.

Course Objectives:

    • To give knowledge of effective inventory operations in the supply chain
    • To enable analysis & examination of current operations
    • To make organizational improvement
    • To examine the link of inventory in the company supply chain operations and activities
    • To analyze the key areas of operations
    • To Identify and Understand key performance indicators
    • To succeed in improving operations
    • Participants will learn how to: 

                 Analyze stock and inventory

                 Make productivity improvements

                 Understand the role of inventory in the supply chain

                 Balance cost and service requirements

                 Create a framework for continual improvement

 .

Who Should Attend:

    • Those new to managing inventory
    • Those non inventory people who need to gain an awareness of the issues and key drivers of stock control operations
    • Inventory, Stock, Supply Chain, Logistics, Warehouse and Distribution Supervisors/Managers
    • Senior and junior Storekeepers
    • Owners, operators and Directors of companies who hold stock and inventory

.

Course Contents:

  • The Supply Chain 

  • The Supply chain definitions, history and key aspects

    •  Definitions

    •  History and development

    •  Key aspects

    •  Befits of supply chain approach

  •  Relationships and material flows in the chain

    •  Integrating the supply chain

    •  Lead-times

    •  Customer service

    •  Adding value

    •  Tradeoffs

    •  Power of information

    •  Sharing and collaboration in the supply chain

  • Products & Stock 

  •  Product Classification

    •  Supply /demand variables

    •  Dependant and independent demand

    •  Patterns of demand

    •  ABC Analysis or the 80/20 rule

    •  Product coding

  •  Inventory costs and service

    •  Why hold stock?

    •  Inventory costs

    •  Service levels from inventory

    •  Cost/service trade offs

    •  Understanding Lead time

    •  Lead time variability and uncertainty

    •  Inventory and statistics

• Replenishment Methods 

  •  How much stock should be held?

    •  Stock time curve

    •  Determining the Reorder level

    •  Determining the Reorder point

    •  Carrying safety stock

    •  Fixed and variable time periods

    •  Fixed and variable order quantities

  •  Replenishment methods for independent demand

    •  When to order

    •  How much to order

    •  Economic order quantities

    •  Two bin methods

    •  Minimum - maximum methods

    •  Comparing continuous review and periodic review methods

  •  Other Replenishment methods

    •  When to order for dependant demand

    •  How much to order for dependant demand

    •  Materials planning (MRP and MRPII)

    •  For spare parts

• Forecasting & Stock Control 

  •  Demand Forecasting

    •  Sales forecasts

    •  Statistical forecasts

    •  When forecasting is easier

    •  When forecasting is harder

  •  Stock Coding
    The method by which stock is coded is important in the overall management process, this session will examine:

    •   Different methods

    •  Understanding of all involved

    •  Checklists to help on deciding the best option

  •  Stock Recording
    This session looks at stock recording, a critical aspect of stock control and if done incorrectly is the sourceof many subsequent errors

    •  Separation of powers

    •  Legal issues

    •  How do we get inaccuracies?

  •  Stock Checking
    Much time can be spent on this activity, but there are methods to both minimize the time and at the sametime increase checking accuracy. This session examines such aspects

    •  Roles and Responsibility

    •  Requirements Job Descriptions

    •  Authority levels

    •  Tolerances and approvals

    •  The program

    •  Options

    •  Reconciliation’s / discrepancies

• Improvements 

  •  Model for planning inventory

    •  Managing inventory by value and by volume

    •  Questions to ask about inventory

    •  Model for inventory planning

    •  What To Implement Now