Inventory Operations Training
Description
Programmes are delivered via fully supported distance/online learning. Students have access to our team of specialist tutors throughout their course and beyond. The programmes build on the experience of the student to deliver new skills and improved performance.
Inventory management is about meeting the required level of service to customers whilst minimising the costs involved in delivering that level of service. Classifying demand, accurate forecasting and determining when and how much to order to replenish inventory levels are all crucial if inventory policy is not to be compromised. Minimising inventory levels without undermining the quality of customer service will become of heightened importance when rising interests begin to pressurise the funding of working capital.
Who should participate?
The Inventory Operations Master Class is aimed at individuals and teams involved in the day to day operation of inventory management systems and those wi…
Frequently asked questions
There are no frequently asked questions yet. If you have any more questions or need help, contact our customer service.
Programmes are delivered via fully supported distance/online learning. Students have access to our team of specialist tutors throughout their course and beyond. The programmes build on the experience of the student to deliver new skills and improved performance.
Inventory management is about meeting the required level of service to customers whilst minimising the costs involved in delivering that level of service. Classifying demand, accurate forecasting and determining when and how much to order to replenish inventory levels are all crucial if inventory policy is not to be compromised. Minimising inventory levels without undermining the quality of customer service will become of heightened importance when rising interests begin to pressurise the funding of working capital.
Who should participate?
The Inventory Operations Master Class is aimed at individuals and
teams involved in the day to day operation of inventory management
systems and those wishing to enhance their knowledge and
understanding of how inventory techniques can be applied. This
course is particularly relevant to organisations looking to improve
its inventory management to meet customer demand while minimising
costs.
What will they learn?
Participants will learn how to analyse the inventory operation of a
business and how to evaluate operational performance. They will
learn how to investigate the requirements for the function. This
depends on stock profile, demand patterns and supply profile. Next
they will develop options for improving the inventory operation.
Finally using their newly learned techniques, participants will
plan the management of a stock reduction programme.
How will they learn?
Participants will learn by using the learning system developed by
People Development Group. SCILworld is a simulated environment
containing a simulated company called SCIL plc.
During the Inventory Operations Master Class, the participant takes on the role of a newly appointed inventory controller in this fictitious company. Their specialist coach takes on the role of their manager and sets the learner a challenging task, asking the learner to explain how they would complete the task within the simulated environment. The learner completes the task by submitting a series of reports, the coach being on hand should the learner require guidance. This approach challenges the learners' thinking and their normal response to everyday situations. It allows them to try new ways of working and to solve problems in a risk free environment, giving them the confidence and competence to apply their learning in the real world.
Fees and learning methods
The Inventory Operations Master Class is available as a
face-to-face event, by distance learning or by a blend of the two.
For an additional fee, face to face courses can be put into context
to reflect a particular company's operation and culture. As the
blend of learning will vary, depending on the needs and learning
style of the learner, there is no set fee.
Please telephone +44 (0) 1530 276590 for details.
Face-to-face tuition
Classroom based, ideal for people who benefit from a participative
inter-active approach.
Distance learning
A coach supported private study option where learners have the
option to work where and when they wish. Learners will work within
the unique SCILworld simulation.
Course Content
. Analyse the Existing Process
Consider the product range as a whole, focusing on period demand,
receipts and stock level. Assuming all the receipts arrive by the
end of the period, draw the stock time curve. Report on the
theoretical and actual average stock levels and the target stock
availability level.
Calculate the average value of the stock. Consider the impact of
increasing inventory on: profit, balance sheet, cash flow, and
return on investment.
Classify specific stock items into: stable or trend, fast or slow,
high or low demand. Identify any weeks where potential rogue
demands have occurred. Research and report on seasonality.
Based on specific product period demand information, calculate the
mean; mean absolute deviation, mean square error and standard
deviation. In order to achieve a service level of 96% what level of
demand would be required?
. Investigation of Requirements
Prepare an ABC Analysis and compile a report detailing your
findings.
Consider how to calculate forecasting error and the impact on
forecasting error of reduced lead times. Consider and report on the
advantages of forecasting by product style and subsequently
applying a colour and quality profile to forecast by individual
item.
Using period demand:
. Show how the simple average forecasting method fluctuates
depending on how many periods are elected.
. Produce a forecast for the next period using weighted
averages.
. Produce a forecast using a four period moving average showing how
it changes throughout the year.
. Recommend a simple guideline to help us identify a rogue period
demand.
Produce a forecast using exponential smoothing
Investigate demand for two previous years and calculate seasonal
indices for each period. Use the data to modify the forecast in the
previous exercise (exponential smoothing). Calculate forecast error
for each period last year. Calculate the standard deviation of the
forecast errors. Compare with and report on the standard deviation
of the original data for the current year.
. Developing Options
Calculate economic order quantity.
Calculate order quantities using coverage analysis - optimum orders
per year and the cost saving arising from doubling the optimum
orders per year.
Create a continuous review system and report on the resulting
average stock levels. Recommend a variation in lead time to allow
for and calculate revised average stock levels. What alternatives
are there to allowing for lead time variability and calculating
safety stock? Recalculate average stock.
Create a periodic review system and the resultant average
stock.
Using the periodic review system, calculate average stock in the
following scenarios:
. Service level 98%
. Lead time two weeks
. Standard deviation reduced by half
. All of the above
Determine current stock turn and how it could be improved. Write
some guidelines for the warehouse to follow on how to perform stock
checks. Consider how their performance should be measured.
Report on what benefits would be achieved from working more closely
with customers, specifying what we could ask our customers to do to
help us and detailing any resultant risks.
Report on the benefits of vendor managed inventory.
Recommend the tactics that could be adopted within inbound supplies
for managing suppliers, particularly what aspects of supplier
performance should be measured and what benefits could be
realised.
. Selection and Implementation
From the forecasting methods considered earlier, choose one method
and determine the forecast for the next three periods.
Calculate stock levels using predicted demand, historic demand and
finally stock run out Summarise the key points of the programme and
report on how you would initiate and manage a stock reduction
process.
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