Essentials in Managing Inventory

Thursday - Friday

9:00am - 5:00pm

Essentials in Managing Inventory is an intensive two-day workshop designed to train you, as logistics and supply chain practitioners, on essential inventory management techniques that will optimize inventory cost and improve service levels.  The course will define the effective methods and tools used in developing proper inventory levels, replenishment systems, safety stock & service levels, and control systems. 

After the course, you will:
1. Describe the importance, purpose and activities in inventory management and control in relation to supply chain and the business at large;
2. Apply the different methods and tools used in the proper planning and control of inventory, for better cost and service level optimization;
3. Analyze and formulate recommendations on how to improve current practices in inventory management; and
4. Identify applicable inventory management performance measures.

Practitioners, supervisors, managers, senior executives, and suppliers involved in the areas of inventory planning, purchasing, warehouse, production planning, demand planning, distribution planning and general management

I.    Introduction
    A. Supply chain management
        1. Supply chain management definition and process
        2. Four pillars - inventory and replenishment
    B. Inventory in the chain
        1. Rationale for inventory                
        2. Cycle stocks
        3. In transit and work in process inventory
        4. Safety stocks
        5. Seasonal and anticipatory stocks

II.    ABC Analysis
    A.    Pareto's law
    B.    Value of inventory
    C.    Usage value computation
    D.    Steps in ABC analysis
    E.    Classification rules

III.    Inventory Costs
    A.    Definition and impact to customer service
    B.    Capital costs
    C.    Storage costs
    D.    Inventory risks costs

IV.    Economic Order Quality (EOQ)
    A.    Cost of inventory
    B.    Elements of EOQ
    C.    Average inventory and carrying cost
    D.    Ordering cost
    E.    Total cost and EOQ formula

V.    Safety Stock Determination
    A.    Definition and need for safety stock
    B.    Methods of computation   
        1. Estimation of variability
        2. Service level approach
        3. Computation of stock-out penalty

VI.    Inventory Control Systems
    A.    Cyclical or fixed order interval system
    B.    Visual review system
    C.    Order point or fixed order quantity system
    D.    Two-bin system or last bag method
    E.    Flow control system
    F.    Advanced inventory control systems - Materials Requirement     Planning (MRP) and Just-in-time (JIT)
    G. Vendor managed inventory
    H. Quadrant model
    I. Square root rule for multiple locations

VII.    Physical Count System
    A.    Annual physical
    B.    Cycle count

VIII.    Performance Measurements

has been practicing logistics and supply management since 1984. He is the Vice Chairman of Bizsolv Asia; Director and Senior Consultant of Global Procure-It; Managing Director of Macrolite Corporation; and Executive Vice President of iSteel Corporation. He is also the Program Director for the Executive Development Program on Supply Chain Management of the Ateneo Graduate School of Business - Center for Continuing Education and Philippine Institute for Supply Management (PISM).