Background:

Requirement planning is a grave process within Supply Chain Management, which guarantees continuity of supply of the inventory at the lowest cost. Efficient demand planning will help the SCM team advance the accuracy of forecasts, ensure enough inventory levels at all times, and enhance profitability by optimizing the expenses. The control side of this process is to ensure that plans are being met and to take the necessary actions when needed.

Benefits:

• State the objectives of inventory management and list their influence on cost and customer service
• Classify relevant Key Performance Indicators (KPIs) to measure and improve inventory performance
• Usage of forecasting techniques to predict demand and better manage lead times
• List numerous techniques to reduce inventory, including Just-in-Time (JIT)
• Calculate the optimum ordering quantity and determine safety stocks and reorder points
• Make proper classification of inventory and use best practices for item specification and cataloguing
• Timetable cycle counts, improve inventory record accuracy, and find ways to reduce inventories

Who should attend?

Those involved in inventory or demand planning and stock control at the operational and supervisory levels. Also, those employed in other functions of supply chain management (purchasing, stores, distribution) who need to comprehend the mechanics of inventory planning and stock control.

Course Contents:

Day One

• Objectives of inventory planning and stock control
• Reasons to hold inventory
• Inventory information system considerations
• Inventory push versus pull systems

Day Two

• Types of inventory
• The inventory ABC classification ranking model
• Uses of the ABC ranking
• Materials specifications and cataloguing

Day Three

• The inventory order cycle
• Dependent versus independent demand
• Factors affecting demand
• Factors impacting demand forecast accuracy

Day Four

Time series forecasting methods:

• Seasonal demand
• Moving average
• Exponential smoothing
• Measuring the accuracy of the forecast
• Setting lead time and methods to control it

Day Five

• Elements of inventory holding and ordering costs
• The Economic Order Quantity (EOQ) model
• Dealing with quantity discounts
• Objectives of safety stocks