Inventory and Stock Control Specialist

Course Outline

The Inventory and Stock Control Specialist course covers the areas important to understand inventory management:

 Types of Inventory

• Raw materials
• Work-in-progress
• Finished goods
• Maintenance, repair and operating goods
• Services
• Transportation

Types of Inventory Costs

• Holding/carrying costs
• Ordering costs
• Stock-out costs

 Importance of Inventory Management

• Higher profits through reduced costs and increased sales
• Improved customer service
• Reduced inventory investment
• Increased productivity
• Inventory record accuracy

Types of Inventory Management Strategies

• Just-in-time
• Material requirements planning
• Hybrid push–pull
• Supply chain management

Objectives of Inventory Planning

• Customer satisfaction
• Forecasting needs
• Controlling costs
• Successful storage

Objectives of Inventory Control

• Protection against fluctuation in demand
• Better use of men, material and machines
• Protection against fluctuations in output
• Control of stock volume
• Control of stock distribution

 Inventory Control Techniques

• Set par levels
• Use first-in, first-out
• Manage relationships
• Apply contingency planning
• Follow regular auditing
• Prioritise with ABC
• Advocate accurate forecasting
• Consider drop shipping

Causes for Increase in Inventory

• Delay in order deliveries
• Quality problems
• Unexpected demand increase
• Inaccurate forecasts of lead times

Major Activities of Inventory Control

• Planning
• Procuring
• Receiving and inspecting
• Storing and issuing
• Recording
• Physical verification
• Follow-up
• Material standardisation and substitution

Steps in Inventory Control

• Deciding minimum and maximum inventory limits
• Determining re-order point
• Determining re-order quantity
• ABC analysis

 Factors Influencing Inventory Control

• Requirements
• Quantity in stock order
• Procurement time/Lead time
• Obsolescence
• Profitability