Stock Management Forecasting & Demand
Demand planning and stock control will help Supply Chain Management (SCM) improve the accuracy of forecasts, ensure enough inventory levels at all times and enhance profitability by optimizing expenses.
In this course, many demand planning theories, models and best practices will be discussed.
This course uses a mix of interactive and hands-on techniques. Beside brief presentations by the consultant and the participants, there will be many individual and group exercises. The exercises are all work related where participants need to calculate or draw the optimal solutions after understanding the process
· State the objectives of stock management and list their impact on cost and customer service
· Prepare proper classification of stock and use best practices for item specification and cataloguing
· Use scientific forecasting techniques to predict demand and better manage lead times
· Differentiate and categorize stock cost elements
· Compute the optimum ordering quantity and determine safety stocks and reorder points
Introduction to stock management
· Supply Chain Management scope
· Functions and objectives of supply chain management
· Objectives of inventory planning and stock control
· Reasons to hold inventory
· Inventory information system considerations
· Inventory push versus pull systems
· Identifying inventory costs
· Customer service in inventory management
Description and classification of inventory
· Types of inventory
· The inventory ABC classification ranking model
· Uses of the ABC ranking
Forecasting demand and lead time
· The inventory order cycle
· Dependent versus independent demand
· Factors affecting demand
· Factors impacting demand forecast accuracy
· Demand patterns
· Time series forecasting methods:
> Seasonal demand
> Moving average
> Exponential smoothing
· Measuring the accuracy of the forecast
· Setting lead time and methods to control it
Inventory costs
· Inventory cost elements
> Cost of item
> Purchasing cost
> Carrying or holding cost
> Stock-out cost
· Inventory systems
· The Economic Order Quantity (EOQ) model
· Dealing with quantity discounts
· Objectives of safety stocks
· Setting safety stocks
Determining the Reorder Point (ROP
Those involved in inventory (materials) planning and stock control at the operational and supervisory levels. Also, all those working in other functions of materials management (purchasing, stores, and distribution) who need to understand the mechanics of inventory planning and stock control.