Best Practice in Inventory Management

Table of Contents

PREFACE

INTRODUCTION

1 THE BASIS OF INVENTORY CONTROL

1.A The role of inventory management

1.B Objectives for inventory control

1.C Profit through inventory management

1.D Reasons for the current stock

2 CUSTOMER SERVICE

2.A Customer Relations

2.B Measuring availability

2.C Demand management

2.D Consuming forecast demand and supply lead time

3 SHAPING INVENTORY

3.A Using Pareto Analysis for control

3.B ABC Analysis

3.C Stock cover

3.D Pareto stock balance

4 PRACTICAL METHODS FOR REDUCING STOCKHOLDING

4.A Approach to Inventory Reduction

4.B The Reduction Project

4 C Obsolete and Excess Stock

5 MANAGEMENT AND CONTROL

5.A Where stock control fits into the organisation

5.B Responsibilities and targets

5.C Skills and Systems

5.D Inventory valuation

6 LEAN SUPPLY

6.A Lean Supply Philosophy

6.B Lean Principles

6.C Implementing lean

6.D Operational benefits of Lean Supply

6.E Developing Lean Operations

7 SAFETY STOCKS

7.A Learning from History

7.B Normal demand patterns

7.C Evaluating safety stocks

8 SETTING THE RIGHT STOCK LEVELS

8.A Simple Assessment of Review Levels

8.B Managing Lead Times

8.C Supplier Delivery frequency effects

8.D Target stock levels

9 PROCUREMENT

9.A The Role of Supply Chain Procurement

9.B Supply partnerships

9.C Single Sourcing

9.D Supply Partnerships

9.E Vendor Appraisal

9.F Pricing Methods

10 DELIVERY QUANTITIES

10.A Supply and Suppliers

10.B Organising Repetitive Supply

10.C Order types

10.D Order quantities

10.E Delivery Quantities

10.F Scheduling supply

10.G Supply Co-ordination

10.H Purchasing Processes

11 FORECASTING DEMAND

11.A Options for assessing demand

11.B Causes of forecasting inaccuracy

11.C Methods of improving forecasting

12 HISTORICAL FORECASTING TECHNIQUES

12.A Basic Forecasting Techniques

12.B Moving Average

12.C Exponentially Weighted Averages

12.D Improved Values for Mean Absolute Deviation

12.E Choosing the Best Forecast - Focus Forecasting

13 IMPROVED FORECASTING METHODS

13.A More Forecasting Tools

13.B Forecasting for seasonal sales

14 DEPENDENT DEMAND

14.A Avoiding uncertainty

14.B Material requirements planning

14.C Master planning

15 SUPPLY CHAIN INVENTORY MANAGEMENT

15.A The basis of the lean supply chain

15.B Coordination

15.C Supply Chain Operations

15.D Replenishment Techniques

16 MEETING THE CHALLENGES

16.A Review

16.B Recipe for success

QUESTIONS & ANSWERS