Day 1: Foundations of Inventory Planning & Strategic Importance

• Introduction to Inventory and Stock Control:
  • Definitions of inventory, stock, and stock control.
  • Role of inventory in the supply chain and business value creation.
  • Balancing conflicting objectives: service level vs. cost.
• Types of Inventory: Raw materials, Work-in-Progress (WIP), Finished Goods, MRO (Maintenance, Repair, and Operations), Pipeline Inventory, Buffer/Safety Stock.
• Inventory Costs – The Full Picture:
  • Holding/Carrying Costs: Capital, storage space, insurance, obsolescence, damage, shrinkage.
  • Ordering/Setup Costs: Administrative, transportation, quality inspection.
  • Shortage/Stockout Costs: Lost sales, backorders, expedited shipping, customer dissatisfaction, production line stoppages.
  • Analyzing the Total Inventory Cost Curve and finding the optimal balance
• Strategic Role of Inventory: Impact on profitability, cash flow, asset utilization, and financial statements.
• Push vs. Pull Inventory Systems (Overview).
• Workshop: Calculating and comparing inventory costs for different inventory policies, highlighting the trade-offs.

Day 2: Inventory Planning Strategies & Demand Analysis

• Inventory Planning Process: Linking demand, supply, and financial objectives.
• Understanding Demand Patterns:
  • Types of demand: Independent vs. Dependent.
  • Characteristics: Stable, seasonal, trending, irregular, lumpy, intermittent.
  • Key factors influencing demand: promotions, market trends, competition, lead times.
• Introduction to Demand Forecasting (as a planning input):
  • Importance of accurate forecasts for inventory planning.
  • Overview of qualitative and quantitative forecasting concepts relevant to planning (e.g., historical data analysis, trend identification).
  • Understanding forecast error and its impact on safety stock.
• Inventory Classification and Segmentation:
  • ABC Analysis (Pareto Principle):
    • Methodology and application steps.
    • Developing differentiated control strategies for A, B, and C items.
  • XYZ Analysis (based on demand variability/predictability).
  • Other classification methods (e.g., criticality, obsolescence risk).
• Service Level Planning: Defining and setting target service levels based on business objectives and costs.
• Practical Exercise: Performing an ABC analysis for a given product list and discussing appropriate planning strategies for each category.

Day 3: Core Stock Control Techniques & Optimization

• Economic Order Quantity (EOQ) Model:
  • Assumptions, formula derivation, and practical application.
  • Impact of changes in ordering and holding costs.
  • Considering quantity discounts and their effect on EOQ.
• Reorder Point (ROP) Systems:
  • Calculating Reorder Point: Lead time demand + Safety Stock.
  • Fixed Order Quantity vs. Fixed Period (Time) Systems: Comparison and suitability.
• Safety Stock Determination:
  • Purpose: Buffering against demand and lead time variability.
  • Statistical methods for calculating safety stock based on desired service levels and variability.
  • Practical considerations for safety stock management
• Just-In-Time (JIT) and Lean Inventory Principles:
  • Philosophy of waste reduction and continuous flow.
  • How JIT impacts inventory levels and lead times.
  • Prerequisites for successful JIT implementation (supplier relationships, quality).
• Min/Max Stock Levels: Setting practical operational limits.
• Laboratory Session: Calculating EOQ, ROP, and safety stock for different items using provided data, and evaluating different ordering policies.

Day 4: Physical Stock Control, Warehouse Management & Accuracy

• The Role of the Warehouse in Stock Control:
  • Functions of a modern warehouse (storage, cross-docking, value-added services).
  • Impact of warehouse operations on inventory accuracy and efficiency.
• Warehouse Layout and Design Principles:
  • Optimizing space utilization, material flow, and accessibility.
  • Storage methods: Fixed, Random, Dedicated.
• Physical Stock Handling and Operations:
  • Receiving: Efficient inbound processing, quality checks, put-away.
  • Picking: Various picking strategies (order, batch, zone, wave).
  • Shipping: Packing, loading, and dispatch accuracy.
  • Material Handling Equipment (MHE) and its impact.
• Maintaining Inventory Accuracy:
  • Causes of inventory discrepancies (human error, theft, damage, system issues).
  • Cycle Counting:
    • Methodology and benefits over annual physical inventory.
    • Designing and implementing a cycle counting program.
    • Reconciling discrepancies and root cause analysis.
  • Importance of robust data capture and transaction control.
• Managing Obsolete, Slow-Moving, and Damaged (OS&D) Inventory: Identification, valuation, and disposition strategies.
• Hands-on Practice: Designing a basic cycle counting schedule for a defined inventory, including prioritization criteria.

Day 5: Performance Measurement, Technology & Continuous Improvement

• Key Performance Indicators (KPIs) for Inventory Planning and Stock Control:
  • Financial KPIs: Inventory Turnover Ratio, Days of Supply, Inventory Carrying Cost %, GMROI.
  • Service Level KPIs: Fill Rate, Order Cycle Time, Backorder Rate, On-Time Delivery.
  • Accuracy KPIs: Inventory Accuracy %, Shrinkage Rate, Forecast Accuracy.
  • Developing an effective inventory dashboard.
• Leveraging Technology for Inventory Management:
  • Inventory Management Systems (IMS) / ERP Modules: Core functionalities, benefits of integration.
  • Warehouse Management Systems (WMS): Overview of features and benefits for physical control.
  • Automatic Identification and Data Capture (AIDC): Barcoding, QR codes, RFID for real-time tracking and accuracy.
• Inventory Planning in a Multi-Location/Network Environment.
• Risk Management in Inventory: Identifying and mitigating risks (supply disruptions, demand volatility, quality issues).
• Continuous Improvement in Inventory Management:
  • Applying Lean principles to identify and eliminate waste.
  • Data-driven decision-making and root cause analysis.
  • Fostering a culture of inventory excellence.
• Final Assessment: Case study requiring participants to develop a comprehensive inventory planning and stock control strategy for a simulated company, including choice of techniques, KPIs, and mitigation of potential risks.