State the objectives of inventory management and list their impact on cost and customer service
Prepare proper classification of inventory and use best practices for item specification and cataloguing
Use forecasting techniques to predict demand and better manage lead times
Compute the optimum ordering quantity and determine safety stocks and reorder points
Schedule cycle counts, improve inventory record accuracy, and find ways to reduce inventories
List various techniques to reduce inventory, including Just-in-Time (JIT)
Identify relevant Key Performance Indicators (KPIs) to measure and improve inventory performance
Target Audience
This course will mainly benefit to purchasing managers, senior buyers, project managers, civil engineers, construction managers, contractors, sub-contractors, site engineers, senior management, and government agencies, architects, construction professionals, and anyone responsible for purchasing at a senior level who seeks to enhance their skills further.
Course Outline
Day 1 – Introduction to Inventory Management
Objectives of inventory planning and stock control
Reasons to hold inventory
Inventory information system considerations
Inventory push vs. pull systems
Identifying inventory costs
Customer service in inventory management
Day 2 – Description and Classification of Inventory
Types of inventory
The inventory ABC classification ranking model
Uses of the ABC ranking
Materials specifications and cataloguing
Day 3 – Inventory Systems
Elements of inventory holding and ordering costs
The Economic Order Quantity (EOQ) model
Dealing with quantity discounts
Objectives of safety stocks
Setting safety stocks
Determining the Reorder Point (ROP)
Day 4 – Reducing Inventory Investment
The importance of JIT or pull theory in inventory management to reduce total cost
Identification of surplus
Disposal options of excess inventory
JIT methods
JIT requirements
JIT risks
Day 5 – Measuring Inventory Management Performance
Importance of tracking the effectiveness of the inventory planning and control function