Introduction to Inventory Management

• Objectives of Inventory Management
• Reasons to Hold Inventory
• Inventory Information System Considerations
• Identifying Inventory Costs
• Customer Service in Inventory Management

Description and Classification of Inventory

• Types of Inventory
• The ABC Inventory Classification
• Uses of the ABC Ranking
• Materials Specifications/Cataloguing

Forecasting Demand and Lead Time

• Dependent versus Independent Demand
• Factors Affecting Demand
• Factors Impacting Forecast Accuracy
• Time-Series Forecasting Methods:
  • Moving Average
  • Exponential Smoothing
  • Seasonal Demand
• Lead Time Management

Inventory Systems

• Inventory Holding and Ordering Costs
• The Economic Order Quantity Model
• Dealing with Quantity Discounts
• Objectives of Safety Stocks
• Setting Safety Stocks
• Determining the Reorder Point

Counting and Controlling Inventory

• Causes of Inaccurate Inventory
• Requirements for Accurate Inventory Records
• Reporting Record Accuracy
• Periodic and Cycle Counting

Reducing Inventory Investment

• Identification and Disposal of Surplus
• Just-In-Time (J.I.T.) Method

Measuring Inventory Management Performance

• Reasons for Poor Inventory Management
• Key Performance Indicators and Targets
• Qualities of the Inventory Specialist