Lean Distribution: Implementing Lean in Distribution, Logistics, and Supply Chain Operations
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Lean Distribution: Implementing Lean in Distribution, Logistics, and Supply Chain Operations Course
Introduction:
Inventory planning is a crucial process that organizations undertake to determine the ideal quantity and timing of their inventory, with the ultimate goal of aligning these plans with the organization's production capacity and sales demands. Effective inventory planning has a significant impact on a company in various ways. Efficiently managing inventory, regardless of its location within the supply chain, plays a vital role in reducing working capital requirements for the enterprise.
The primary objective of inventory planning is to strike the right balance between having enough inventory to meet customer demands and minimizing excess stock that ties up valuable resources. By accurately forecasting demand patterns, organizations can avoid stockouts, ensure timely order fulfillment, and maintain high levels of customer satisfaction. Simultaneously, avoiding excessive inventory levels helps minimize carrying costs, storage expenses, and the risk of obsolescence.
Proper inventory planning enables organizations to optimize their working capital requirements. Inventory is a significant component of a company's current assets, and excessive inventory can tie up valuable resources that could be allocated more effectively elsewhere. By implementing effective inventory planning strategies, businesses can reduce their working capital needs, freeing up funds for other essential activities such as research and development, marketing initiatives, or investment in new technologies.
Additionally, efficient inventory planning contributes to improved supply chain performance. By aligning inventory levels with production capabilities and customer demand, organizations can enhance coordination and collaboration among various stakeholders in the supply chain. This alignment leads to smoother operations, reduced lead times, and improved overall efficiency.
In conclusion, inventory planning plays a vital role in managing a company's working capital requirements, meeting customer demands, and optimizing supply chain performance. By adopting effective inventory planning strategies, organizations can strike the right balance between inventory quantities and timing, ensuring efficient resource allocation, cost reduction, and enhanced customer satisfaction. Join us as we delve into the intricacies of inventory planning and explore the best practices and techniques that can help organizations achieve optimal inventory management and drive business success.
Course Objectives:
By the end of the course, participants will be able to:
- List the objectives of inventory management and its impact on cost and customer service
- Perform proper classification of inventory and use best practices for item specification/cataloging
- Use forecasting techniques to predict demand and better manage lead times
- Identify the optimum ordering quantity and determine safety stocks and reorder points
- Conduct cycle counts, improve inventory record accuracy, and find ways to reduce inventories
- List various techniques to reduce inventory, including JIT (Just-In-Time)
- Apply Key Performance Indicators (KPIs) to measure and improve inventory performance
Who Should Attend?
This course is for those involved in inventory (materials) planning and stock control at the operational and supervisory levels. Also, those working in other functions of materials management (purchasing, stores, and distribution) who need to understand the mechanics of inventory planning and stock control.
Course Outlines:
Introduction to Inventory Management
- Objectives of Inventory Management
- Reasons to Hold Inventory
- Inventory Information System Considerations
- Identifying Inventory Costs
- Customer Service in Inventory Management
Description AND Classification of Inventory
- Types of Inventory
- The ABC Inventory Classification
- Uses of the ABC Ranking
- Materials Specifications/Cataloguing
Forecasting Demand and Lead Time
- Dependent versus Independent Demand
- Factors Affecting Demand
- Factors Impacting Forecast Accuracy
- Time-Series Forecasting Methods:
- Moving Average
- Exponential Smoothing
- Seasonal Demand
- Lead Time Management
Inventory Systems
- Inventory Holding and Ordering Costs
- The Economic Order Quantity Model
- Dealing with Quantity Discounts
- Objectives of Safety Stocks
- Setting Safety Stocks
- Determining the Reorder Point
Counting and Controlling Inventory
- Causes of Inaccurate Inventory
- Requirements for Accurate Inventory Records
- Reporting Record Accuracy
- Periodic and Cycle Counting
Reducing Inventory Investment
- Identification and Disposal of Surplus
- Just-In-Time (J.I.T.) Method
Measuring Inventory Management Performance
- Reasons for Poor Inventory Management
- Key Performance Indicators and Targets
- Qualities of the Inventory Specialist