This module seeks to provide the student with some of the tools and techniques used to plan, control and manage the material flow within the supply chain, which may be a production system which manufactures products or may be within a service company. Students will learn about the importance of inventory management, various inventory models and methods, including safety stock calculations. The module also seeks to outline the strategic importance of forecasting and its relationship and importance to other functional areas within the supply chain. It provides students with various forecasting approaches and techniques, as well as methods for monitoring and controlling forecasts.
The aim of the module is to give students a good overview of forecasting techniques and how to apply them in practice. It emphasises on the importance of generating reliable forecasts that a company uses to derive acquisition of materials, planning internal resources, and manufacturing to support on time and complete delivery. The second part of this module aims to outline the importance of optimal inventory management. It emphasises on the importance of high levels of customer service and inventory turns and low inventory investment as a major aim and provides student with an in-depth understanding of methods and concepts of inventory management.
Demand forecasting
The nature of demand; dependent and independent demand. Planning and control. Selecting and implementing a forecasting method; characteristics of good forecasts; improving forecasting ability; appropriateness, cost and accuracy of forecasting models; demand forecasting techniques – sales force estimates, Delphi techniques, market surveys, moving average, exponential smoothing.
Inventory management
Reasons for holding and not holding inventory; inventory costs – direct and indirect; types of inventory; strategic nature of inventory, inventory and customer service, labelling inventory, inventory as a part of the supply chain.Inventory management under conditions of certainty - Economic Order Quantity (EOQ); adjustments to the EOQ; inventory management under conditions of uncertainty; calculating safety stock levels; calculating fill rate; inventories and customer service; symptoms of poor inventory management; improving inventory management – ABC analysis, forecasting, inventory models, backorders; planning and control problems; order processing systems; impact of inventory reduction on profit performance; inventory analysis tools. JIT and stockless systems.
The module combines formal lectures, interactive presentations, case studies, participant activities and exercises to maximise the impact of the learning experience. Students will have ample time to consider the ideas and apply the skills discussed and it is expected that these interactive exercises will serve to reinforce some of the learning on the module. In addition, case histories and video presentations and lab demonstration will be presented to illustrate key themes in the module.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 60 |
| Other Assessment(s) | 40 |