Logistics Inventory Course

Lesson 1 • Types and Classifications of Inventory

Categorizes inventory by function and stage in the production cycle. Enables accurate classification decisions in real warehouse and retail contexts.

Lesson 2 • What Inventory Management Means

Defines inventory management and its strategic importance to profitability and service levels. Establishes shared vocabulary used throughout the course.

Lesson 3 • Key Stakeholders and Roles

Maps the people and departments responsible for inventory decisions. Clarifies accountability structures common in logistics organizations.

Lesson 4 • Core Inventory Management Objectives

Explains the balance between holding costs, stockouts, and service targets. Connects objectives to measurable business outcomes.

Lesson 1 • Inventory Valuation Methods

Compares FIFO, LIFO, and weighted-average costing approaches and their effect on reported profit. Enables selection of the appropriate method for different business contexts.

Lesson 2 • Cost of Stockouts and Excess Inventory

Quantifies the financial and operational damage caused by both shortages and overstock. Motivates the precision required in demand and replenishment planning.

Lesson 3 • Components of Inventory Holding Cost

Breaks down all costs associated with storing inventory, including capital, space, and risk. Provides a framework for calculating total holding cost percentage.

Lesson 4 • Inventory Turnover and Financial Ratios

Teaches calculation and interpretation of inventory turnover, days on hand, and related ratios. Links these metrics to working capital efficiency and profitability.

Lesson 1 • Collaborative Forecasting Practices

Introduces sales and operations planning and collaborative planning with suppliers and customers. Shows how shared data reduces forecast error across the supply chain.

Lesson 2 • Causal and Regression-Based Forecasting

Uses external variables such as price, promotions, and economic indicators to improve forecast accuracy. Introduces simple linear regression applied to demand data.

Lesson 3 • Time-Series Forecasting Methods

Covers moving averages, exponential smoothing, and trend-adjusted models using historical data. Students practice building and comparing these models on sample datasets.

Lesson 4 • Fundamentals of Demand Forecasting

Introduces demand patterns, forecast horizons, and the role of forecasting in inventory planning. Establishes why forecast accuracy directly drives stock level decisions.

Lesson 1 • Combined ABC-XYZ Matrix

Merges value and variability dimensions into a nine-cell matrix for nuanced item management. Produces specific replenishment and review strategies for each matrix cell.

Lesson 2 • XYZ Analysis for Demand Variability

Classifies items by demand variability using coefficient of variation to complement ABC analysis. Enables more precise safety stock and replenishment policy decisions.

Lesson 3 • Slow-Moving and Obsolete Inventory Management

Identifies SLOB inventory using turnover thresholds and aging reports. Applies disposal, return, and remarketing strategies to recover value and free capital.

Lesson 4 • Criticality and Risk-Based Classification

Adds a criticality dimension to account for items whose stockout causes disproportionate operational harm. Integrates risk scoring into classification to protect essential operations.

Lesson 1 • Reorder Point and Safety Stock Calculation

Calculates the reorder point using lead time demand and safety stock buffers. Links safety stock levels to desired service levels and demand variability.

Lesson 2 • Economic Order Quantity Model

Derives and applies the EOQ formula to minimize combined ordering and holding costs. Demonstrates sensitivity analysis to test model robustness under changing inputs.

Lesson 3 • Periodic Review Replenishment Systems

Explains fixed-interval ordering systems and how to calculate the order-up-to level. Compares periodic review to continuous review in terms of cost and control.

Lesson 4 • Just-in-Time and Lean Replenishment

Applies lean principles to reduce inventory buffers through pull-based replenishment. Introduces kanban systems and their role in waste elimination.

Lesson 1 • Receiving, Putaway, and Storage Processes

Details the steps from goods receipt through putaway to ensure accurate stock records from the start. Connects receiving accuracy to downstream inventory reliability.

Lesson 2 • Cycle Count Program Design

Builds a structured cycle count program aligned with ABC classification and operational schedules. Ensures continuous accuracy without shutting down warehouse operations.

Lesson 3 • Inventory Counting Methods

Compares annual physical counts, cycle counting, and perpetual inventory approaches. Guides selection of the most cost-effective counting method for each environment.

Lesson 4 • Inventory Accuracy Metrics and Root Cause Analysis

Measures inventory record accuracy and location accuracy to identify systemic error sources. Applies root cause analysis to eliminate recurring discrepancies.

Lesson 1 • Warehouse Management Systems

Covers core WMS functions including receiving, putaway, picking, and inventory tracking. Guides configuration decisions that align system behavior with operational policies.

Lesson 2 • Barcode and RFID Data Capture

Explains barcode symbologies and RFID technology for real-time inventory identification and tracking. Compares cost, accuracy, and use-case fit of each technology.

Lesson 3 • Inventory Analytics and Dashboards

Builds inventory performance dashboards using key metrics and visual reporting tools. Enables data-driven decisions by translating raw data into actionable insights.

Lesson 4 • Emerging Technologies in Inventory Management

Surveys IoT sensors, autonomous mobile robots, and AI-driven replenishment tools reshaping inventory operations. Assesses readiness and adoption pathways for each technology.

Lesson 1 • Service Level Strategy and Trade-Off Analysis

Defines target service levels by customer segment and product category to guide safety stock investment. Quantifies the cost of each incremental service level improvement.

Lesson 2 • Total Cost of Ownership in Inventory Decisions

Extends cost analysis beyond purchase price to include all lifecycle costs of holding and managing stock. Enables sourcing and stocking decisions that minimize total cost rather than unit price.

Lesson 3 • Inventory Reduction and Working Capital Improvement

Identifies systematic levers to reduce excess inventory and free working capital without harming service. Builds a structured inventory reduction project plan.

Lesson 4 • Network Inventory Optimization

Optimizes stock positioning across a distribution network to minimize total cost while meeting service targets. Applies risk pooling and postponement strategies to reduce overall inventory investment.