Inventory Management Course Outline
Introduction to Inventory Management
-What is inventory management?
-Why do we need it?
-What is the role of inventory in a business?
-Who are the stakeholders in inventory management?
The Importance of Good Inventory Management
-What is the purpose of inventory control and management?
-Why is inventory important to a company or organization? How does it affect the cost of production, cash flow, and profit margins? Why is it important to have accurate records for accounting purposes? What are the benefits of using technology for inventory management?
Supply Chain Management: An Overview -What is supply chain management (SCM)? What are its main components and functions? How does SCM improve efficiency throughout an organization’s supply chain? What are some of the challenges faced by companies when implementing SCM strategies?
Inventory Management Course Outline
Introduction
Welcome to the world of inventory management! We’re glad you’re here. In this course, we’ll show you the basics of organizing your inventory and running a smooth operation. We’ll explain what good processes and principles look like, how to classify your stock, and everything else you need to know to get started with this hobby. So sit back and get comfortable! We’re about to demystify the fun and exciting ways of managing your inventory efficiently.
Organization of Inventory
Your inventory is the stock of goods held by a firm to meet its future requirements, usually for use as inputs into production or for resale. It can be classified into two categories:
- Raw materials inventory – These are the raw materials required to produce finished goods. They include chemicals, tools and equipment and other items that are used in the production process but do not become part of the final product.
- Finished goods inventory – This is a subset of your total inventory that represents finished output waiting for sale or distribution to customers.
Processes and Principles
Inventory management is a process that involves the ordering, receiving, and storing of inventory. It’s also the process of managing the flow of goods and services through a company.
Stock Classification
The second step in inventory management is classification. Classification is a method used to group like items into categories, making it easier to understand the inventory. The first thing you need to do when classifying your inventory is decide on the categories (called classes).
You can classify by type of item or by location in which they are stored. For example, if you own a bookstore and sell books at different price levels, you would classify them as fiction, non-fiction and children’s books. Or if you run a grocery store where all foods are organized by aisle or department—you could use those departments as classes: dairy products; breads & cereals; canned goods & beverages; frozen foods; produce; meats & poultry; etcetera (see Figure 1).
This course is a good way to learn about inventory management.
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Conclusion
In order to get the most out of this course, it’s important to note that there will be a lot of information presented and discussed. You’ll need to bring a pen and paper with you so that you can take notes during the class. We also recommend bringing something for lunch.