Stock Management: Forecasting & Demand

Course details

Day 1
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
 
Day 2
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:
                > Seasonal demand
                > Moving average
                > Exponential smoothing
· Measuring the accuracy of the forecast
· Setting lead time and methods to control it
 
Day 3
Inventory costs
· Inventory cost elements
                > Cost of item
                > Purchasing cost
                > Carrying or holding cost
                > 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)
 
  Updated on 16 May, 2024