Day 1: Fundamentals of Inventory & Strategic Management

• Introduction to Inventory and Stock:
  • Definitions, types (raw materials, WIP, finished goods, MRO, transit, cycle, safety, anticipation).
  • The crucial role of inventory in the supply chain and business operations.
  • The balance: customer service vs. cost.
• Costs Associated with Inventory:
  • Holding/Carrying Costs: Capital, storage, insurance, obsolescence, damage, shrinkage.
  • Ordering/Setup Costs: Administration, transportation, inspection.
  • Shortage/Stockout Costs: Lost sales, expedited shipping, customer dissatisfaction, production delays.
  • Analyzing the Total Inventory Cost Curve.
• Strategic Importance of Inventory Management:
  • Impact on profitability, cash flow, and financial statements.
  • Competitive advantage through efficient inventory.
• Push vs. Pull Inventory Systems.
• Workshop: Calculating various inventory costs (holding, ordering, stockout) for different scenarios to understand their financial impact.

Day 2: Demand Forecasting Techniques & Accuracy Measurement

• Understanding Demand Patterns:
  • Types of demand: Independent vs. Dependent.
  • Analyzing demand characteristics: stable, seasonal, trend, irregular, lumpy.
  • Factors influencing demand: promotions, economic conditions, competition
• Qualitative Forecasting Methods:
  • When to use them: New products, limited data.
  • Techniques: Delphi method, Sales Force Opinion, Market Research, Executive Judgment.
• Quantitative Forecasting Methods:
  • When to use them: Historical data available.
  • Time Series Analysis:
    • Moving Averages (Simple, Weighted).
    • Exponential Smoothing (Single, Double, Triple/Holt-Winters for seasonality).
    • Trend Projection.
  • Causal Forecasting Methods (Overview): Regression Analysis.
• Measuring Forecast Accuracy:
  • Forecast Error: Bias, Mean Absolute Deviation (MAD), Mean Squared Error (MSE), Mean Absolute Percentage Error (MAPE).
  • Tracking Signal.
• Practical Exercise: Applying different forecasting methods to historical sales data and calculating forecast accuracy metrics.

Day 3: Inventory Planning & Stock Control Techniques

• Inventory Categorization and Segmentation:
  • ABC Analysis:
    • Principles and application (Pareto Principle).
    • Practical steps for performing ABC analysis.
    • Differentiated management strategies for A, B, and C items.
  • XYZ Analysis (based on demand variability).
• Economic Order Quantity (EOQ) Model:
  • Assumptions and formula derivation.
  • Calculating EOQ for optimal order size.
  • EOQ with quantity discounts.
• Reorder Point (ROP) Systems:
  • Calculating Reorder Point considering lead time and demand.
  • Safety Stock Determination:
    • Purpose and importance in buffering against uncertainty.
    • Methods for calculating optimal safety stock levels to achieve desired service levels.
• Fixed Order Quantity vs. Fixed Period (Time) Systems: Comparison and application.
• Just-In-Time (JIT) and Lean Inventory:
  • Philosophy and core principles.
  • Benefits (reduced waste, improved quality) and challenges (supplier reliance, risk of stockouts).
• Material Requirements Planning (MRP) & Distribution Requirements Planning (DRP) (Overview): Integrating inventory with production and distribution planning.
• Laboratory Session: Calculating EOQ, ROP, and safety stock for various products, and analyzing inventory policies based on ABC classification.

Day 4: Warehouse Operations & Physical Inventory Management

• The Role of Warehousing in Inventory Management:
  • Functions: Storage, consolidation, cross-docking, value-added services.
  • Types of warehouses (distribution centers, fulfillment centers, bonded warehouses).
• Warehouse Layout and Design Principles:
  • Optimizing space utilization, flow of goods, accessibility.
  • Storage strategies: fixed, random, dedicated.
• Key Warehouse Operations:
  • Receiving: Unloading, inspection, put-away procedures.
  • Storage: Proper shelving, racking, and material handling equipment.
  • Order Picking: Batch, zone, wave picking methods.
  • Packing and Shipping: Ensuring accuracy and efficiency.
• Maintaining Inventory Accuracy:
  • Common causes of inventory discrepancies.
  • Cycle Counting: Methodology, benefits, and implementation vs. annual physical inventory.
  • Importance of robust record-keeping and transaction accuracy.
• Managing Obsolete, Slow-Moving, and Damaged Inventory (OS&D): Identification, valuation, and disposal strategies.
• Return Logistics and Reverse Supply Chain (Overview).
• Hands-on Practice: Designing a basic warehouse flow and developing a cycle counting schedule for a specific product category.

Day 5: Inventory Performance, Technology & Future Trends

• Key Performance Indicators (KPIs) for Inventory Management:
  • Service Level Metrics: Fill Rate, Order Cycle Time, On-Time Delivery.
  • Cost Metrics: Inventory Holding Cost %, Inventory Turnover Ratio, Days of Supply.
  • Accuracy Metrics: Inventory Accuracy %, Stockout Rate.
  • Developing an Inventory Dashboard.
• Inventory Management Information Systems (IMS) / Enterprise Resource Planning (ERP):
  • How technology supports efficient inventory control.
  • Core functionalities: stock tracking, order processing, reporting.
  • Benefits of integration across business functions.
• Automatic Identification and Data Capture (AIDC) Technologies:
  • Barcoding and QR Codes: Principles and applications.
  • Radio Frequency Identification (RFID): How it works, benefits, and use cases in inventory.
• Warehouse Management Systems (WMS) (Overview): Key features and integration with ERP/IMS.
• Emerging Trends in Inventory Management:
  • AI and Machine Learning for advanced forecasting and optimization.
  • IoT (Internet of Things) for real-time inventory tracking.
  • Blockchain for enhanced supply chain visibility and traceability.
  • Robotics and Automation in warehousing.
  • Sustainability and Circular Economy in inventory.
• Continuous Improvement in Inventory Management: Applying Lean and Six Sigma principles.
• Final Assessment: Group project – Analyze a simulated business scenario, diagnose inventory challenges, propose a comprehensive strategy integrating forecasting and stock control techniques, and define relevant KPIs for performance monitoring.