Supply Chain Inventory Management

OBJECTIVES:

‍This course provides you the basic concepts and advanced models in inventory management. This course discusses issues related to inventory in a supply chain context. It also gives a multidimensional view to approach a problem with case studies.

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UNIT I INTRODUCTION TO INVENTORY MANAGEMENT

‍Inventory in SCM, Cash to cash cycle time, measure of inventory in terms of days, Inventory turnover ratio and its relationship with working capital, Review of models, Q-models and P-models Aggregation of Inventory, Cycle stock concepts, Ordering multiple items in a single order to reduce cycle stock

UNIT II INVENTORY MODELS

‍Safety stock issues Safety stock with lead time and demand uncertainty (for Q-models), Short term discounting & Forward Buying, Periodic review models with safety stock, Comparison of P and Q systems

UNIT III INVENTORY MANAGEMENT STRATEGIES

‍Single period models, Inventory management for fashion supply chains, Postponement strategies to reduce inventory, Examples of Fashion supply chains: NFL Reebok, ZARA and Sport Obermeyor Risk Pooling, Applications, Risk pooling in different forms-Substitution, Specialisation, Postponement and Information pooling

UNIT IV INVENTORY OPTIMIZATION

‍Distribution resource planning techniques, Inventory and transportation integration decisions, Vendor Managed Inventory, Product availability measures, Product fill rate, order fill rate, Cycle service level.

UNIT V LATEST TRENDS IN INVENTORY MANAGEMENT SYSTEMS

‍Industry initiatives, Efficient consumer Response and Quick response ,CPFR and other industry initiatives, Inventory reduction strategies, Managing inventory in Reverse Logistics and Remanufacturing situations , Best practices in Inventory Management in a Supply Chain