Inventory Management Foundations

Name: Inventory Management Foundations
Rating: 4.6 (5 reviews)

Learn Core Principles to Optimize Inventory and Boost Operational Success

Created bySuppachok Nitsoonkit, PhD

Last updated 6/2023

English

English [Auto],

What you'll learn

Defining and describing what takt time is and why it is used
Understanding and explain how using standardized parts reduces costs
Understanding and summarize the importance of quality at the source
Make a decision to cite who should manage lean inventory
Defining and describing how to create a lean culture in your business

Course content

4 sections • 13 lectures • 39m total length

Inventory Basics2:48
Learn how to plan, coordinate, and control inventory across global operations to balance customer service with cost, by deciding when to make or order and how much.
Types of Inventories4:00
Explore the four cycle inventory types—raw materials, work in progress, finished goods, and MRO—and how safety stock, in transit, and anticipation inventory balance supply and demand.
Manage Inventory as Money3:01
Treat inventory as money, manage it as a current asset on the balance sheet, and use inventory turns to convert inventory into cash and income.
Costs of Inventory3:33
Balance shortage costs with holding costs, including item cost, storage, handling, taxes, insurance, interest, obsolescence, price declines, quality costs, and ordering costs, to optimize inventory across departments.

The Right Amount of Inventory3:07
Determine the right inventory level by weighing holding costs, including cost of capital and opportunity costs, storage, and transportation, against risks of damage or obsolescence and lost sales.
Reasons to Hold Inventory3:32
Learn four valid reasons to hold inventory: safety stock, meeting demand, preventing disruptions, and discounts; avoid four bad reasons that mask supplier, forecasting, or process problems.
Push & Pull Strategy in Production Inventory2:06
Explore push and pull strategies in production inventory, comparing forecast-based planning to actual orders. Implement just-in-time material flow, focus bottleneck management, and use on-floor observations to optimize inventory.
Finished Goods Inventory2:12
Manage finished goods inventory by assigning unique SKUs and balancing production and supplier lead times, stage inventory to finish quickly, and meet demand while minimizing carrying costs.
Manage Service Inventory3:05
Explore how service inventory differs from factory inventory, applying the push pull boundary to manage work completed before customers arrive, buffering variability with labor, information, and self-service options.

Sales and Operations Plan4:02
Define the sales and operations plan to set annual production and inventory levels. Balance demand forecasts with capacity through collaboration of sales, operations, and finance, considering outsourcing and contract manufacturers.
Demand Forecasting3:34
Learn how demand forecasting drives inventory decisions by distinguishing independent and dependent demand, and applying horizon reduction, aggregation, and multiple inputs to improve accuracy, timeliness, and simplicity.
Enterprise Resource Planning (ERP)2:39
Learn how ERP coordinates inventory and resources by sharing databases across departments, enabling end-to-end planning, order tracking, and supply chain management across global operations.

Requirements

No Specific Knowledge, Only Need Positive Mind and Great Attitude to Learn

Description

WHAT IS INVENTORY MANAGEMENT?
The objective of inventory management is to replace a very expensive asset called “inventory” with a less-expensive asset called “information.” In order to accomplish this objective, the information must be timely, accurate, reliable and consistent.

Inventory management answers the question of how much inventory is needed to buffer against the fluctuations in forecast, customer demand and supplier deliveries.

Why Management Inventory?
The major reason for managing inventory is to reconcile the following potentially conflicting objectives:

#1 Maximizing Customer Service
#2 Maximizing Efficiency of Purchasing and Production
#3 Minimizing Inventory Investment
#4 Maximizing Profit

The world of business continues to change rapidly and dramatically. No longer will we see the stability of the past; reorganization is fast becoming standard.

Business organizations are having to reinvent and reorganize themselves continually in order to meet demands of the global marketplace.

Everyone is faced with the challenge of developing the most highly educated and diverse workforce ever known. Because requirements for skill levels continue to increase, less-educated workers are struggling to find jobs. The competition for goods will only become more intense.

More important, this course challenges you to upgrade your existing skills and acquire new ones. Regardless of your present skill level, you have the opportunity to increase your knowledge of inventory management.

Within this course you will find:
• An organizing question at the beginning of each module to orient your thinking—all content that follows provides the answer to the question
• Learning objectives that aid in measuring and understanding
• The distilled essence of inventory management theory and planning information
• Proven skill-building topics for adding to your professionalism

Who this course is for:

People Who Desire to be a Professional Inventory Handler

Inventory Management Foundations

What you'll learn

Explore related topics

Course content

Inventory Introduction4 lectures • 13min

Inventory Management5 lectures • 14min

Inventory Control Systems3 lectures • 10min

Final Thought1 lecture • 1min

Requirements

Description

Who this course is for: