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INVENTORY MANAGEMENT
Introduction
This course introduces the learner to inventory management
Target Group
Managers, planners, shop supervisors and costing personnel
Course Objectives
The program aims to provide:
 | Common understanding of the definition of Inventory, its role in the
organisation and the costs involved in holding the inventory. |
| An understanding of the various replenishment systems available and
determine amount to order at one time. |
| To understand how the substantial investment in inventory can be reduced for an
organization. |
| How problems relating to the management of inventory can usually be traced
back to a lack of proper procedures or the wrong implementation of
procedures. |
Duration
5 Days
Entry Requirements
There are no specific Entry requirements.
Key Learning Points
| Overview - Inventory Management |
| The three objectives of Inventory Management (Maximise customer service,
minimise investment in inventories, reduce the cost of managing the
inventories) |
| How to identify inventory on the balance sheet |
| Analysis and functions of inventory (Raw material, WIP, Finished goods,
MRO) |
| Distinction between independent and dependent demand |
| Methods to order independent demand items. (Reorder point, Periodic
Review, safety stock calculations) |
| Dependent demand items. (MRP, Bill-of-Materials, Master Data) |
| Inventory classification according to usage patterns |
| Forecasting |
| Ensuring inventory accuracy |
| The elements used to establish the cost of inventory and the methods used
to value it. |
On completion, the learner will be able to:
| Identify inventory as a balance sheet item |
| Do an analysis of the inventory |
| Apply appropriate techniques in inventory management |
Benefits to the organisation:
| Improved customer service |
| Reduced inventory investment and the resultant reduction in working
capital |
| Reduced costs in managing the inventories |
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AGISTIX
CC
