Inventory Management Foundations

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