Upon completion of this course, participants will be able to:

• Apply advanced demand forecasting techniques, including time series and causal methods.
• Master inventory categorization methods (ABC, VED, FSN) for focused management effort.
• Calculate optimal order quantities using EOQ and advanced lot-sizing models.
• Determine and manage the appropriate level of **Safety Stock** to mitigate demand and lead time variability.
• Design and implement a robust **Cycle Counting** program to replace annual physical counts.
• Analyze the costs associated with inventory (holding, ordering, stockout) and identify reduction opportunities.
• Understand and apply Material Requirements Planning (MRP) and Distribution Requirements Planning (DRP).
• Develop inventory policies that align with the organization's customer service level targets.

• Inventory and Materials Managers
• Demand Planners and Forecasters
• Supply Chain Analysts and Consultants
• Warehouse and Distribution Center Supervisors
• Finance Professionals involved in Working Capital Management
• Operations and Production Planners

• Quantitative individual exercises on calculating EOQ, Safety Stock, and ROP.
• Group activity: developing an ABC analysis and differentiated control policy for a product set.
• Case study analysis of a company's inventory obsolescence crisis and the mitigation plan.
• Simulation of a cycle counting program's error resolution process.
• Discussions on the challenges of managing inventory in a global supply chain.

Unit 1: Inventory Strategy and Categorization

• Inventory functions: decoupling, cycle stock, safety stock, anticipation stock
• The financial impact of inventory on the balance sheet and working capital
• Trade-offs between inventory investment and customer service level

• Implementing **ABC Analysis** (Pareto principle) for differentiated control
• Applying VED (Vital, Essential, Desirable) analysis for critical spares
• Using FSN (Fast, Slow, Non-moving) analysis to identify obsolescence risk

Unit 2: Advanced Forecasting and Planning

• Time series analysis: moving averages, exponential smoothing, trend models
• Measuring forecast accuracy (MAD, MSE, Bias) and managing error
• Consensus planning and the role of Sales and Operations Planning (S&OP)

• Overview and application of Material Requirements Planning (MRP)
• Principles of Distribution Requirements Planning (DRP) for network inventory

Unit 3: Optimization Models and Policy Setting

• Advanced calculation of the **Economic Order Quantity (EOQ)** model
• Applying lot-for-lot, fixed order interval, and other lot sizing rules
• Managing constraints: capacity, minimum order quantities, and discounts

• Statistical methods for calculating safety stock based on service level targets
• Handling variability in demand and lead time (standard deviation)
• Setting reorder points (ROP) under conditions of uncertainty

Unit 4: Inventory Control and Accuracy

• Designing a high-frequency **Cycle Counting** program to eliminate annual counts
• Techniques for investigating and resolving root causes of inventory errors
• Auditing the cycle counting process for effectiveness and compliance

• Optimizing slotting, putaway, and picking to reduce inventory handling errors
• The role of WMS in enforcing inventory policies and transactions

Unit 5: Obsolescence, Cost, and Performance

• Policies for identifying, valuing, and disposing of obsolete inventory
• Tax and financial accounting implications of inventory write-downs

• Detailed breakdown of inventory holding costs (capital, risk, storage)
• KPIs: Inventory turnover, Days of Supply (DOS), and fill rate analysis