Course Objectives
CILT Certificate in Stock Management, Forecasting and Demand Planning - Virtual Learning
Course Objectives
By the end of the course, participants will be able to:
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
Those involved in inventory or demand planning and stock control at the operational and supervisory levels. Also, those working in other functions of supply chain management (purchasing, stores, distribution) who need to understand the mechanics of inventory planning and stock control.
Target Competencies
Logistics theory and practices
Planning and logistics work processes
Inventory management
Assessment and planning of requirements
Demand planning
Warehouse management
Performance management
Course Outline
Introduction to inventory management Objectives of inventory planning and stock controlReasons to hold inventoryInventory information system considerationsInventory push versus pull systemsIdentifying inventory costsCustomer service in inventory management
Description and classification of inventoryTypes of inventoryThe inventory ABC classification ranking modelUses of the ABC rankingMaterials specifications and cataloguing
Forecasting demand and lead timeThe inventory order cycleDependent versus independent demandFactors affecting demandFactors impacting demand forecast accuracyDemand patternsTime series forecasting methods:Seasonal demandMoving averageExponential smoothingMeasuring the accuracy of the forecastSetting lead time and methods to control it
Inventory systemsElements of inventory holding and ordering costsThe Economic Order Quantity (EOQ) modelDealing with quantity discountsObjectives of safety stocksSetting safety stocksDetermining the Reorder Point (ROP)
Counting and controlling inventoryImportance of accurate inventory recordsWarehousing functionsCauses of inaccurate inventory recordsRequirements for accurate inventory recordsReporting record accuracyPeriodic and cycle counting
Reducing inventory investmentThe importance of JIT or pull theory in inventory management to reduce total costIdentification of surplusDisposal options of excess inventoryJIT methodsJIT requirementsJIT risks
Measuring inventory management performanceImportance of tracking the effectiveness of the inventory planning and control functionsReasons behind poor inventory management performanceSetting inventory KPIs and targetsExamples of KPIs used in the inventory planning and control functionsQualities of the inventory specialist