What Is Inventory Optimization?

Inventory control is the management and control of various items, finished products and other resources in the entire production and operation process of the manufacturing or service industry, so as to keep their reserves at an economically reasonable level. Inventory control is a business method that uses inventory control methods to obtain higher profits. Inventory control is an important component of warehouse management. It is to control the inventory level of the enterprise on the premise of meeting customer service requirements, and strive to reduce the inventory level as much as possible and improve the efficiency of the logistics system to improve the market competitiveness of the enterprise.

Inventory control

When it comes to so-called "inventory control", many people understand it as "

Expert investigation found that the general approach of enterprises is:

According to the law of supply and demand, determine the management of economic and reasonable material storage during production and distribution. Inventory management should play a buffering role, make logistics balanced and smooth, not only ensure normal production and supply, but also reasonably reduce inventory funds to obtain better economic results.

In 1915, F.W. Harris of the United States published

1. Reduce costs and increase working capital

Inventories take up cash and make expenses soar. When formulating the income statement, do not list the cash occupied by inventory as savings-the highest management department will immediately collect the cash back to the company and it should be directly recorded as "frozen cash".

2. Improve product quality

Production of fewer products at a time is more conducive to focusing on quality issues. When the inventory of work in process decreases with the improvement of product flow, quality issues must receive more attention, quality information feedback must be more timely, problem solving must receive more attention, and the feedback of receiving information must be more timely and resolved. Quality issues must be stronger, so product quality must be improved.

3. Reduce production cycle

The production cycle is the time elapsed from the beginning to the end of a production process. This process can be defined by you, for example, it can consist of several assembly operations, or it can be a product line from beginning to end. As the production cycle is shortened, products wait less in the queue, mass production is reduced, and the production process is smoother, so the work in process inventory will be reduced accordingly.

In the course of dealing with business, sales staff must master the knowledge and skills of inventory management. There are two aspects of inventory management, one is the 1.5 times principle, and the other is inventory turnover, which are explained separately below.

1.5 times principle

The 1.5 times principle is one of the main contents of inventory management. It is the principle of safe inventory summarized by the sales practices of many companies. The specific data is based on the sales of previous customers. 1.5 times the principle of stocking is a must for sales staff

main problem

Information issues, supply chain operation issues, supply chain strategy and planning issues.

Integrated into the following aspects:

1. Without supply chain

Material Requirements Planning

MRP is

ABC Management Law

Module 1: Goal Setting: Integrated Stock Control Basis (Goals & Objectives)

1. What is the core purpose of supply chain and logistics management? Opposite unity of OTD VS ITO

2. Case Discussion: Suppose you are the manager of a small restaurant ...

3. Is inventory control "warehouse management"?

4. Why "Inventory Control"?

5. What is the inventory turnover rate? Inventory turnover calculation model

6. Why do you say that "inventory" means "earning" (money)?

7. Inventory turnover vs. return on assets model-inventory holding costs: an invisible profit killer

8. Inventory turnover rate vs cash flow model-C2C: days of cash flow

9. How to improve inventory turnover?

10. How to correctly locate the "inventory" of the manufacturing industry?

Module 2: Stewardship: Improve Inventory Turnover-Integrated Supply Chain Inventory Control System (Process Management)

1. How to find the control switch of the inventory (ISC process decomposition)?

2. (SCOR-ISC) Integrated Supply Chain Management Business Process Decomposition Exercise: Finding Key Points of Inventory Control

3. The formation principle of inventory

4. Case Discussion: Confusion in the Clothing Industry

5. The first point of inventory control: inventory control and warehouse management-transaction data and master data

6. Panel discussion: Inventory data accuracy calculation (IDA) model

7. Phenomenon discussion: Why the bigger the warehouse, the faster the company dies?

8. Second point of inventory control: inventory control and purchasing plan

9. The third point of inventory control: inventory control and purchasing plan

10. Tool discussion: Constraints based Rescheduling model

11. Tool Discussion: Replanning Success Rate vs. Inventory Formation Analysis

12. Phenomenon discussion: Why shouldn't come, and shouldn't come?-"Money to sleep"

13. Material shortage and FKR model

14. Inventory control fourth point: inventory control and procurement

15. Case Discussion: Procurement Safety Psychology vs MRP Replanning Success Rate

16. The fifth point of inventory control: inventory control and production-Over-Production

17. Case discussion: Tiger bites the sky, nowhere to talk?-FKR- Internal amplifier of analysis of supply chain

18. Discussion: IOI-Inertial Model of Inventory

19. Discussion: Occupational habits of production managers vs inventory control

20. The sixth point of inventory control: inventory control and marketing

21. Tool Discussion: FDA-Prediction Accuracy-Prediction Analysis Processing Model (Three Curves)

22. Product life cycle control vs Just in time logic-Product life cycle control vs "just in case" logic

23. Improve the accuracy of forecast data-sales incentive model (resource book passbook)

24. Improve the accuracy of forecast data-SOP vs ATP vs MPS

25. Case discussion: (customer) give money and ship? -CPFR (Collaborative Planning, Forecasting and Replenishment) Discussion

26. Phenomenon discussion: Why the more you sell, the more you pay? Control the external amplification effect of the supply and demand chain

27. Case Discussion: Don't talk to me about the conditions! -Do you dare to take this order?

28. The seventh point of inventory control: inventory control and ERP strategy

29. Discussion of the question: Will I definitely be able to reduce inventory when I go to ERP?

30. Case discussion: Why was the procurement planner punished for unreasonable?

31. Discussion: Thousands of people: determine ERP inventory replenishment strategy based on material attributes

32. Class Exercise: Design of Inventory Control System-KPIs

Unit III: Establishing Rules in Advance-Inventory Forecasting, Structural Analysis and Monitoring Systems (KPIs) under Integrated Supply Chain Management

1. Inventory turnover rate-the first point of inventory monitoring

2.Discussion: Innovative Calculation Model of Inventory Turnover

3. Inventory forecast and structure analysis-the second point of inventory monitoring

4. Inventory forecasting models (three methods of inventory forecasting)

5. Inventory supply days (DOS)-third point of inventory monitoring

6. Looking for "clues" of inventory changes: Daily inventory report of material manager-fourth point of inventory monitoring

7. Inventory risk vs bad debt accrual-fifth point of inventory monitoring

8. Tool discussion: IBM's inventory risk analysis model

9. EC (Design Change) and Dull Materials Analysis Decision Model

Module 4: Best Practices for Integrated Supply Chain Management and Inventory Control

1. VMI: Vendor Managed Inventory-Wool Out of Sheep?

2. How does VMI reduce supplier inventory? Balanced production vs. MRP tension

3. CPFR: collaborative planning, forecasting and inventory replenishment-a win-win solution for customers and suppliers

4. VMI + MRP + JIT Kanban: Push and Pull of Integrated Supply Chain Management

5. Nokia Beijing Xingwang International Logistics Industrial Park-Utilizing the Effect of Inventory Aggregation / Eliminating the Amplification Effect of the Supply Chain

Module 5: Stewardship: Inventory Control and People (Organizational Structure and Roles-People Management)

1. Inventory control and organizational structure

2. The inventory is the fault of the general manager?

3. Inventory control and people

4. Exercise: How to design an integrated supply chain management organization structure?

5. Analysis of inventory control structure tree

6. Q & A (course answering) ^[1]