The rapidly changing needs of customers and resulting margin reductions are forcing distributors to explore innovative methods to cut cost, increase customer service, and maximize resource utilization. Inventory is the largest asset that a distributor has to manage to maximize return on assets, increase profitability and gain competitive advantage in the market place.

This unique distribution-focused inventory management program from Texas A&M will teach proven and scientific inventory management techniques, including multi-criteria inventory stratification, stratification-driven forecasting, and setting statistical reorder point and buy quantities. The program involves interactive exercises and games as well as a case-study based learning experience.

This program will address:

• What are Inventory Key Performance Indicators and how does it affect financial bottom line?
• What is the cost of holding inventory?
• What is the cost of stocking out?
• How to stratify inventory based on GMROI, Velocity and Hits?
• How to implement Inventory Stratification based Forecasting system?
• When to buy and how much to buy?
• How to set statistical safety stock?
• How to work with Supplier to manage inventory?

Principles of Inventory Management in the Supply Chain

• Key Performance Indicators
• KPI Exercise – Goals and Metrics
• Financial Metrics
• Operational Metrics
• Customer Metrics
• Distribution Trends

• Importance of Communication
• Reasons for Bullwhip Effect
• Counteract Bullwhip Effect
• How to Gain Control of Supply Chain
• In-class demonstrations

• Inventory Management Principles
• Inventory Holding Cost
• Inventory Stock-out Cost
• Combination Inventory Stratification
• Inventory Stratification Best Practices
• “C” & “D” Inventory Policies
• Inventory Stratification Tactical Plans

• Forecasting Overview
• Expert Forecasting Game
• Measuring Forecasting Performance
• Combination Forecasting Game
• Forecasting Data Integrity Issues
• Forecasting Best Practices

• How much to buy?
• Buying Decision Variables
• Economic order Quantity
• Total Relevant Cost

• When to buy?
• Static and Dynamic Reorder Point
• Continuous and Periodic Review
• Demand and Supply Variability
• Statistical Safety Stock
• Seasonal Product Reordering
• Supplier Development Strategies

• Inventory Key Performance Metrics
• Understanding Holding and Stock out cost
• Combination Inventory Stratification
• Stratification driven Forecasting
• Forecasting parameters and policy settings.
• Scientific Reorder and Buying Decisions
• How to set Statistical safety stock
• Inventory Management Best Practices

• Increase profitability by applying proven scientific methods to inventory management.
• Stock the right inventory at the appropriate levels.
• Reduce stock outs and increase customer service.
• Understand Distribution Trends and Best Practices.

• Distribution Managers
• Branch & Regional Managers
• Planners and Buyers
• Purchasing Professionals
• Distribution Operations Professionals
• Management and Operations Trainees