Standard |
DMM 101 - Inventory Planning And
Control
Provides the student with the knowledge and skills necessary for successful control of a company's inventory. Emphasis will be placed on inventory methods and control systems, physical inventories, prevention of shortages, and how current technology can assist the manager in inventory planning and control. Topics include: systems, area of management attending, economic order quantities, ABC analysis, MRP, bar coding, physical inventory, and cycle counting.
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Competency Areas |
Hours
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Systems |
Class |
5 |
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Area of Management Attending |
D. Lab |
0 |
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Economic Order Quantities |
P. Lab/O.B.I. |
0 |
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ABC Analysis |
Credit |
5 |
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MRP |
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Bar Coding |
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Physical Inventory |
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Cycle Counting |
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Prerequisite: |
Provisional admission |
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Corequisite: |
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Course Guide |
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Competency |
After completing this
section, the student will: |
Hours |
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Class |
D.Lab |
P.Lab/ O.B.I. |
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SYSTEMS |
5 |
0 |
0 |
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Purpose |
Give two reasons for carrying an inventory. |
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Types |
Name the three types of inventory systems. |
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Two-bin |
Describe the two-bin system for
inventory control. |
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Periodic order |
Describe the periodic-order
system of inventory control. |
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Combination |
State the determining factors
of combination systems inventory control. |
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AREA OF MANAGEMENT ATTENDING |
10 |
0 |
0 |
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Stock balance and ordering |
State the factors used to
determine order quantity. |
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Safety stock |
Discuss the term safety stock
(cushion) as it applies to inventory management. |
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Reorder point |
Give examples of how the
reorder point is determined. |
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Obsolescence |
State actions needed to prevent
stock from becoming obsolete. |
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Span of control |
Describe single-party
responsibility as it applies to span of control in inventory management. |
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Standardization |
Discuss how standardization
aids and hinders inventory system management. |
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ECONOMIC ORDER QUANTITIES |
5 |
0 |
0 |
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Classical approach |
Describe the classical or basic
approach to computing economic order quantity (EOQ). |
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Other considerations |
Discuss other economic order
quantity considerations. |
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Compare the economic factors
involved in the classical and inventory ordering under uncertainty. |
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ABC ANALYSIS |
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Concept |
Discuss the structure of an ABC
items analysis. |
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Application |
State the rules for determining
turnover rate for an inventory system. |
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MRP |
10 |
0 |
0 |
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Role in production |
Describe the role of materials requirements
planning (MRP) in the production of finished goods. |
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Delivery date computation |
Develop an MRP for a product
having multiple parts and a variable delivery schedule. |
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BAR CODING |
2 |
0 |
0 |
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Benefits |
Describe the main benefits of bar coding |
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Considerations |
Describe the factors that impact the effectiveness of bar
coding Describe how to select a bar code that is correct for your
operation |
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PHYSICAL INVENTORY |
5 |
0 |
0 |
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Frequency |
State the formula used to
determine inventory turnover. |
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Cost |
Name the relevant costs
associated with inventory planning and control. |
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Methods |
Describe the cycle counting method
of inventorying. |
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Describe the sample-check
method of inventorying. |
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Describe the annual inventory
method of stock control. |
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CYCLE COUNTING |
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Products |
Develop a plan for cycle counting
materials for a product manufacturing firm. |
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Services |
Develop a plan for cycle
counting materials used in providing services. |
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Suggested Resources |
Suggested Resources
include textbooks shown below or most current edition.
Books
Ackerman, K. B. (1990). Practical handbook of warehousing (3rd
ed.). New York: Van Nos Reinhold.
Arnold, J. R.
Tony. (1998). Introduction to Materials Management (3rd ed.). Boston, Mass: McGraw Hill.
Aft, L. S.
(1987). Production and inventory control.
San Diego: Harcourt Brace Jovanovich.
Fogarty, D. W., & Hoffmann, T. R. (1983).
Production and inventory
management. Cincinnati: South-Western.
Hohenstein, C. L. (1982). Practical stock & inventory techniques. New York: Van Nos Reinhold.
Tompkins, James A. and Harmelink, Dale. (1994). The Distribution Management Handbook. Boston, Mass: McGraw Hill.
For additional
information on computer software, training aids, workshop material, seminar
proceedings, and readings in inventory planning and control contact:
American Production & Inventory Control Society, Inc.
500 W. Annandale Road
Falls Church, VA 22046-4274
Phone: 1-800-444-2742