Inventory Planning and Stock Control

Demand planning and stock control will help Supply Chain Management (SCM) improve the accuracy of forecasts, ensure enough inventory levels at all times and enhance profitability by optimizing expenses.

Programme Code
TR-1015
Duration
5 Days
Delivery
Classroom - Virtual
Programme Overview

Demand planning and stock control will help Supply Chain Management (SCM) improve the accuracy of forecasts, ensure enough inventory levels at all times and enhance profitability by optimizing expenses. When demand planning and stock control are properly executed, shortages of what is needed and extra stocks will be a story of the past. Demand planners are “behind the scenes” professionals who are entrusted with this task. Their job is not straightforward given the dynamic nature of the scope and its many uncertainties. However, when executed right, the companies involved can capitalize on the many untapped opportunities where SCM can make a difference. In this course, several demand planning theories, models and best practices will be discussed. When properly implemented, they will help participants in dealing with various future scenarios in order to ensure a continuous flow of inventory at the least possible cost.


Programme Objectives

By the end of the course, participants will be able to:

  • State the objectives of stock management and list their impact on cost and customer service
  • Prepare proper classification of stock and use best practices for item specification and cataloguing
  • Use scientific forecasting techniques to predict demand and better manage lead times
  • Differentiate and categorize stock cost elements
  • Compute the optimum ordering quantity and determine safety stocks and reorder points
Target Audience

Those involved in inventory (materials) planning and stock control at the operational and supervisory levels. Also, all those working in other functions of materials management (purchasing, stores, and distribution) who need to understand the mechanics of inventory planning and stock control.

Target Competencies
  • Planning logistics
  • Logistics work processes
  • Inventory management
  • Assessment and planning of requirements
  • Forecasting demand
Programme Outline

Introduction to stock management

  • Supply chain management scope
  • Functions and objectives of supply chain management
  • Objectives of inventory planning and stock control
  • Reasons to hold inventory
  • Inventory information system considerations
  • Inventory push versus pull systems
  • Identifying inventory costs
  • Customer service in inventory management

Description and classification of inventory

  • Types of inventory
  • The inventory ABC classification ranking model
  • Uses of the ABC ranking

Forecasting demand and lead time

  • The inventory order cycle
  • Dependent versus independent demand
  • Factors affecting demand
  • Factors impacting demand forecast accuracy
  • Demand patterns
  • Time series forecasting methods
  1. Seasonal demand
  2. Moving average
  3. Exponential smoothing
  • Measuring the accuracy of the forecast
  • Setting lead time and methods to control it

Inventory costs

  • Inventory cost elements
  1. Cost of item
  2. Purchasing cost
  3. Carrying or holding cost
  4. Stock-out cost

Inventory systems

  • The Economic Order Quantity (EOQ) model
  • Dealing with quantity discounts
  • Objectives of safety stocks
  • Setting safety stocks
  • Determining the Reorder Point (ROP)