Inventory Planning and Control

Definition and Importance of Inventory

• The role of inventory in supporting operational continuity.

• The relationship between inventory and operational costs.

• Strategic impact of inventory management on overall performance.

Types and Classification of Inventory

• Raw materials, work-in-progress, and finished goods.

• Spare parts and strategic stock.

• Methods for classifying inventory by usage and value.

Minimum, Maximum, and Reorder Points Concepts

• Determining minimum stock to avoid shortages.

• Setting maximum levels to prevent overstocking.

• Calculating reorder points accurately.

Methods for Determining Inventory Levels

• Fixed consumption rate method.

• Using historical data for estimation.

• Considering influencing factors like suppliers and lead times.

Quantitative and Qualitative Forecasting Methods

• Mathematical forecasting models.

• Analysis of seasonal trends and cyclical demand.

• Relying on expert opinions when data is insufficient.

Consumption Pattern Analysis

• Comparing actual vs. estimated consumption.

• Identifying fast-moving and slow-moving items.

• Using analysis to support planning decisions.

Principles of Material Planning

• The concept of MRP and its role in reducing waste.

• Essential data required for MRP implementation.

• Relationship between MRP, procurement, and production.

Effective MRP Implementation Steps

• Preparing bills of materials and scheduling orders.

• Determining quantities and delivery schedules.

• Regular data review to ensure accuracy.

Importance of Safety Stock

• Covering emergencies and supply shortages.

• Determining appropriate reserve quantities.

• Balancing cost with operational security.

Policies Against Stockouts

• Using unexpected consumption indicators.

• Rapid response strategies.

• Supporting the supply chain with precautionary measures.

Continuous vs. Periodic Monitoring

• Differences between real-time monitoring and periodic checks.

• Using manual inventory cards.

• Controlling unexpected variances.

Inventory Records and Outputs

• Organizing item cards and tracking them.

• Maintaining accurate movement records.

• Linking inputs and outputs and reviewing discrepancies.

Key Operational Performance Indicators

• Inventory turnover rate.

• Availability and service levels.

• Shortage and spoilage rates.

Analyzing Results to Improve Performance

• Comparing actual performance with targets.

• Identifying deviations and taking corrective actions.

• Preparing periodic reports for management.

Inventory-Related Cost Components

• Storage and maintenance costs.

• Ordering and handling costs.

• Costs of shortages or overstocking.

EOQ Application

• Economic order quantity concept.

• Reducing costs through balance.

• EOQ relation to ordering and storage cycles.

Accounting Methods for Inventory Valuation

• FIFO and LIFO methods.

• Weighted average method.

• Effect of valuation method on profit and asset value.

Periodic and Surprise Inventory Checks

• Inventory count methodologies and types.

• Managing accounting discrepancies.

• Relationship between stocktaking and operational control.

Integrating Inventory Management with the Supply Chain

• Coordinating operations across departments.

• Role of inventory in reducing lead times.

• Importance of material and information flow.

Balancing Demand and Supply

• Using demand management systems.

• Supplier coordination and accurate forecasting.

• Reducing delays and improving responsiveness.

Electronic Inventory Management Systems (WMS)

• Features and benefits of WMS.

• Improving visibility and inventory control.

• Real-time tracking and movement analysis.

Modern Tracking and Control Technologies

• Use of RFID and barcodes.

• Role of IoT in inventory monitoring.

• Achieving system and process integration.

Digital Transformation in Inventory Management

• Smart analytics and machine learning applications.

• Data-driven decision support.

• Reducing human errors and costs.

Sustainable Development and Waste Reduction

• Linking inventory to sustainability goals.

• Managing inventory in a circular economy.

• Recycling and surplus reduction techniques.