Introduction
A warehouse is necessary for a business. All the materials needed by the industrial unit are deposited there, and materials are supplied as needed. Because inventory is a current asset to a company, inventory control and warehouse management are essential to operations. The development, management, and maintenance of methods for inventory control and warehouse management are the key topics of this course. It gives experts control over the essential components of a productive operation and serves as a manual for integrating responsible inventory control management practices with warehouse operations.
Course objectives
By the end of this course the participants will be able to:
- Recognize the many kinds of inventories and their significance to businesses.
- Be familiar with the guiding concepts and objectives of inventory management and control.
- Recognize the expenses related to inventory control.
- Have a working knowledge of inventory valuation and verification techniques.
- Recognize the various strategies for managing dependent demand and independent demand inventories effectively and when to use them.
- Be familiar with the foundations of stock handling and warehousing.
- Recognize the roles played by various departments within the inventory and warehousing organization.
- Have an understanding of how to evaluate and enhance inventory management performance.
Duration: 10 days
Target audience
This course is intended for professionals in finance, procurement, and supply chain management who are trying to enhance their inventory management practices in order to become more successful and efficient. Managers and personnel who work in warehouses.
Program outline
Topic 1: warehouse management
Warehouse organization
- introduction to warehouse organization
- position of warehouse/stores in the organization
- organization structure of stores division
- organization matters for efficient working of stores division
- delegation of authority
Requisitions and replenishment of materials
- need for requisitioning the material
- replenishment of stock items
- preparation of materials requisition report
- dispatch of requisition to user department
- review order quantity
Performance evaluation of stores activities
- criticism of stores division
- poor inventory control
- improper store-keeping and tools management
- performance indicators and evaluation
- how is performance evaluation carried out
Iso standards and warehouse activities
- introduction to iso standards
- the importance of iso standards
- registration for iso certification
- warehouse activities and quality assurance
- stores division activities in conformance to iso 9001
Warehouse location, layout, and facilities planning
- number and size of stores
- location of stores
- layout planning of warehouse
- physical facilities planning
Warehouse security, safety, and maintenance
- security
- entry to warehouse
- management of warehouse keys
- closing of warehouse
- issue to authorized individuals
Topic 2: inventory control
Inventory classification and strategies
- advantages of classification of inventory
- regular inventory item
- in-process inventories
- finished goods inventory
- strategic considerations in the control of finished goods inventory
- market research
Codification and standardization
- methods of codification
- variety reduction
- advantages of standardization
- situations where standardization is not preferred
- types of standards
- standardization program
Inventory control model
- theoretical inventory control model
- elements of inventory control model
- dynamic nature of the inventory control model
- maintenance requirements
- reorder point fluctuations
Inventory control techniques
- best order quantity
- economic order quantity (eoq) defined
- determining economic order quantity (eoq)
- variable costs
- abc analysis
- other techniques of analysis
Effective management of inventory
- factors influencing the stocking of inventory
- appropriate maintenance techniques
- administrative and financial factors
- steps for management of inventory
- diagnostic survey
- reconditioning and overhauling of inventory
Valuation of inventory
- importance of valuation of inventory
- valuation of material issues
- first in first out (fifo)
- last in first outs
- highest in first out (hifo)
- next in first out (nifo)
- simple average method
- weighted average cost method
- factors considered in selection of method of valuation of inventory