Inventory Planning Master Class

Inventory management is concerned with meeting the required level of service to customers while minimising the costs involved in delivering that level of service. Effective inventory planning delivers to organisations the means to get the four "rights" right - ensuring consistent delivery of the right product in the right quantity to the right place at the right time. The most effective inventory plan is one that minimizes the cost of holding inventory, yet avoids stock-outs so that customer service levels coincide with company goals.

Who should participate?
The Inventory Planning Master Class is designed for people who have (or who aspire to) a tactical or strategic role with responsibility for balancing optimum stock levels with excellent service to customers.

What will they learn?
Participants will complete the programme with a thorough understanding of the significant competitive advantage that can be gained by astute inventory planning and management. Further, they will be given proven practical skills and techniques which can be applied in the workplace. Participants will learn how to analyse the inventory planning function and how to investigate current and future requirements. Next, they will develop options for functional improvement, finally recommending the optimum improvement to be implemented.

How will they learn?
Participants will learn by using the learning system developed by People Development Group. SCILworld is a simulated environment containing a simulated company called SCIL plc. During the Inventory Planning Master Class, the participant takes on the role of a newly appointed inventory manager in this fictitious company. Their specialist coach takes on the role of their manager and sets the learner a challenging task, asking the learner to explain how they would complete the task within the simulated environment. The learner completes the task by submitting a series of reports, the coach being on hand should the learner require guidance.

Participants will be required to develop a detailed knowledge of:

1. The current processes and future needs of the simulated business.
2. How the planning and effective management of inventory can positively impact on company profitability and customer service.

This approach challenges the learners' thinking and their normal response to everyday situations. It allows them to try new ways of working and to solve problems in a risk free environment, giving them the confidence and competence to apply their learning in the real world.

Fees and learning methods
The Inventory Planning Master Class is available as a face-to-face event, by distance learning or by a blend of the two. For an additional fee, face to face courses can be put into context to reflect a particular company's operation and culture.

As the blend of learning will vary, depending on the needs and learning styles of the learners, there is no set fee.
Please telephone +44 (0) 1530 276590 for details

Face-to-face tuition
Classroom based, ideal for people who benefit from a participative inter-active approach.

Distance learning
A coach supported private study option where learners have the option to work where and when they wish. Learners will work within the unique SCILworld simulation.

Course Content

The 'learning by doing' approach requires the learner to complete a major task which is broken down into the following components:

• Analyse the Existing Process
  Submit a report analysing how the cost of holding inventory changes as it moves down the supply chain, identifying how it differs for each product group.
  Consider the decoupling point position for each product group, exploring the use of push and pull processes. What could the company do to change the decoupling point and what would be the impact on the levels of service set for the product groups?
  Prepare an analysis of the safety stock levels set for the product groups. Calculate the financial impact of variability within lead time. Determine how a change to weekly rather than period ordering would affect safety stock levels.
  Experiment with different forecasting techniques, simple average, weighted average. moving average (with and without trend) and exponential smoothing (with and without trend) determining how effective they are. Establish seasonal indices and learn how to apply them to forecasts. Report on how the forecast error changes between each technique and on the effect of forecast error on inventory levels.
  Create a simulation model for a periodic review system.

• Investigation of Requirements
  Developing the ideas from the analysis of the existing process.
  Give views on the impact of changing service level, availability targets, forecast accuracy and lead times. Give an outline plan for improving inventory performance.
  Recommend some KPIs for measuring inventory performance and how they should be calculated.

• Developing Options
  Prepare a report detailing the differences between Collaborating Planning, Forecasting & Replenishment (CPFR), Vendor Managed Inventory (VMI) and the traditional inventory management approaches. Explore the advantages and disadvantages of these different techniques?
  What would be the benefits of adopting Distribution Requirement Planning (DPR)? Detail how it would work and what would have to be considered prior to implementation.
  Explore different configurations of logistics networks and review the effects on inventory levels.

• Selection and Implementation
  Summarise your findings and present your recommendations in a short report highlighting how they will contribute to our business strategy, reduce costs and improve availability.
  Provided a report detailing how you would implement your recommended course of action. Include your plan of how you would overcome any major challenges