
Explore inventory control and materials management within a dynamic supply chain, mastering EOQ, ABC and VAT analysis, safety stock, reorder points, and quantity discount models.
Master materials management as the planning and control of materials flow, from identification of need through usage and accounting, using forecast and reorder points to avoid waste and capital lockup.
Define materials management objectives to support operational requirements, manage procurement, usage, and accounting, and develop sources of supply for organizational goals.
Procure materials at the least possible cost without compromising quality, quantity, or performance, and maintain an optimum service level with reliable availability and minimal capital tied up.
Explore how inventory maintains stock to meet future demand, and determine optimal order quantities and timing using economic order quantity and demand forecasts.
Identify and classify the components of inventory, including raw materials, purchased parts, work in process, in-transit items, and tools and equipment, within the broader context of materials management.
Optimize inventory control by determining what to order, when to order, and how much to order, balancing cost, safety stock, lead time, EOQ, reorder level, and ABC classification.
Explore ABC classification using cost, value, and usage, with an example that calculates total value and annual usage to categorize items into A, B, and C.
Utilize ABC analysis to selectively control and focus on high value items, achieving gains through strict A-class management and reduced clerical costs, while recognizing recategorization as usage and costs vary.
Learn how vital, essential, and desirable (ved) analysis classifies materials by production risk and stockout costs, compares it with abc analysis, and explains the role of inventory control.
Explore economic order quantity (EOQ) models to minimize total inventory cost by balancing ordering and carrying costs in materials management, guiding what, when, and how much to order.
Explore the basic EOQ model assumptions: known and constant demand, no shortages, fixed lead time, and order quantities received in a single delivery.
Explore the inventory order cycle, identifying reorder points, lead times, and safety stock to determine the economic order quantity for minimal total costs.
Explore the EOQ cost model by calculating annual ordering and carrying costs using annual demand, order quantity Q, and average inventory Q/2 to determine total inventory cost.
Explore how order quantity affects annual cost in the eoq cost model. Derive the optimal quantity by equating ordering and carrying costs.
Compute the economic order quantity using the formula to yield 2000 yards for 10,000 annual demand, then place five orders per year with a 73-day cycle to minimize total cost.
Demonstrate calculating EOQ, optimal orders, and minimum annual inventory cost for a 10,000 unit demand with rupees 2 per unit, rupees 36 per order, and 9% carrying cost.
Compare the current 250-unit ordering policy with the EOQ of 433 units using the EOQ model, highlighting how following scientific inventory management reduces total costs.
Explore the production quantity model, contrasting non instantaneous receipts with economic order quantity, using daily demand d and production rate p to derive the optimal order quantity.
Visualize the production quantity model with inventory on the y-axis and time on the x-axis, showing maximum inventory q(1−d/p) and the production quantity formula for Qopt.
Apply the production quantity model to find the optimal q* ≈ 2,257 yards for a 10,000-yard demand, with carrying cost $0.75 and ordering cost $1.50.
Explore quantity discounts and the trade-off between bulk purchasing and carrying costs within inventory control. Learn how the EOQ model applies and how unit price falls with higher order quantities.
Explore the quantity discount model and how order size drives unit price and total cost, with price tiers for 0–99, 100–199, and 200+ parts.
Explore a quantity discount model and EOQ calculations, showing how ordering cost, carrying cost, and quantity-based price affect the optimal order quantity (about 72.5 units) and total cost.
Understand safety stock as a buffer added to on-hand inventory during lead time to keep operations moving, reduce stockouts, and meet demand with a probabilistic service level.
Compute the reorder point by multiplying demand rate by lead time. Apply the example with d = 5 and l = 5, yielding r = 25 to prevent stockouts.
Analyze how variable demand affects reorder point and safety stock to prevent stockouts, even with non-linear demand, using the production quantity model and inventory control concepts.
The Certification in Inventory Control Management is designed to provide comprehensive knowledge and practical skills required to effectively manage and control inventory in a dynamic supply chain environment. This course covers essential concepts, methodologies, and tools used in inventory control and materials management, equipping participants with the expertise to optimize inventory levels, reduce costs, and improve overall supply chain efficiency.
Course Outline:
Materials Management: Definition
Understanding the fundamental concepts and scope of materials management.
Materials Management
In-depth exploration of materials management practices and their significance in the supply chain.
Materials Management: Objectives
Identifying the primary goals and objectives of effective materials management.
Responsibilities of Materials Management
Exploring the key responsibilities and roles involved in materials management.
What Is Inventory?
Defining inventory and its critical role in business operations.
Components of Inventory
Examining the various components that constitute inventory.
Inventory and Supply Chain Management
Understanding the relationship between inventory management and supply chain efficiency.
Inventory Control
Strategies and techniques for maintaining optimal inventory levels.
Various Types of Analysis
Overview of different analytical methods used in inventory control.
ABC Classification
Introduction to ABC classification as a method for categorizing inventory.
ABC Classification: Example and Calculations
Practical examples and calculations to apply ABC classification.
Advantages of ABC Analysis
Benefits and advantages of implementing ABC analysis in inventory management.
Limitations of ABC Analysis
Discussing the limitations and challenges of ABC analysis.
V.E.D. (Vital, Essential, Desirable) Analysis
Introduction to VED analysis for prioritizing inventory items based on criticality.
Economic Order Quantity (EOQ) Models
Understanding the EOQ models for determining optimal order quantities.
Assumptions of Basic EOQ Model
Key assumptions underlying the basic EOQ model.
Inventory Order Cycle
Exploring the inventory order cycle and its components.
EOQ Cost Model Formula
Detailed explanation of the EOQ cost model formula.
EOQ Cost Model Graph
Visual representation of the EOQ cost model.
Production Quantity Model
Introduction to the production quantity model for batch production.
Production Quantity Model Graph and Formula
Graphical and formulaic representation of the production quantity model.
Production Quantity Model Example and Calculations
Practical examples and calculations for the production quantity model.
Quantity Discounts
Exploring quantity discount models and their impact on inventory decisions.
Quantity Discount Model Graph
Visual representation of the quantity discount model.
Quantity Discount Model Example
Practical example to understand the application of quantity discount models.
Safety Stock
Understanding the concept and importance of safety stock in inventory management.
Reorder Point
Determining the reorder point to maintain adequate inventory levels.
Variable Demand with a Reorder Point
Managing inventory with variable demand and setting appropriate reorder points.
Reorder Point with a Safety Stock
Calculating reorder points considering safety stock levels.
50 Exercises and Solutions
Hands-on exercises and detailed solutions to reinforce learning and practical application.
Course Outcomes:
Upon completion of the Certification in Inventory Control Management, participants will be able to:
Understand the principles and objectives of materials management.
Classify and manage inventory effectively using various analytical methods.
Optimize inventory levels using EOQ and other inventory models.
Implement safety stock and reorder point strategies to handle variable demand.
Apply quantity discount models to improve cost efficiency.
Utilize practical exercises and solutions to solve real-world inventory control challenges.
Who Should Attend:
This course is ideal for supply chain professionals, inventory managers, procurement specialists, anyone wants to learn and get involved in materials management and inventory control who seeks to enhance their knowledge and skills in this critical area.
Enroll in the Certification in Inventory Control Management today and take the first step towards mastering the art of efficient inventory control!