Inventory Management Course

Lesson 1 • Core Objectives and Business Impact

Explains the primary goals of inventory control and links them to profitability and customer satisfaction. Frames the cost-service trade-off central to all later chapters.

Lesson 2 • Inventory Classification Systems

Introduces ABC and XYZ classification methods for prioritising inventory attention. Provides the analytical lens applied in demand and replenishment chapters.

Lesson 3 • Overview of the Inventory Lifecycle

Traces inventory from procurement through consumption or disposal. Establishes the end-to-end process context for all subsequent chapters.

Lesson 4 • What Inventory Management Means

Defines inventory, its types, and its role in operations. Establishes shared vocabulary used throughout the course.

Lesson 1 • Qualitative Forecasting Methods

Covers expert judgment, market surveys, and the Delphi technique for situations with limited historical data. Useful when launching new products or entering new markets.

Lesson 2 • Understanding Demand Patterns

Identifies trend, seasonal, cyclical, and irregular demand components. Recognising patterns is the prerequisite for choosing the right forecasting model.

Lesson 3 • Quantitative Forecasting Techniques

Teaches moving averages, exponential smoothing, and regression-based forecasting. Builds the mathematical foundation for data-driven demand planning.

Lesson 4 • Measuring Forecast Accuracy

Introduces MAD, MAPE, and bias metrics to evaluate forecast quality. Accurate measurement enables continuous improvement of forecasting processes.

Lesson 1 • Key Inventory Performance Metrics

Defines inventory turnover, days on hand, and fill rate as operational KPIs. These metrics connect inventory decisions to financial and service outcomes.

Lesson 2 • Building an Inventory Budget

Guides students through forecasting inventory investment and setting cost targets. Links financial planning to operational inventory strategy.

Lesson 3 • Inventory Valuation Methods

Compares FIFO, LIFO, and weighted average costing approaches. Valuation method choice affects reported profit and tax obligations.

Lesson 4 • Components of Inventory Cost

Breaks down holding, ordering, shortage, and acquisition costs. Understanding cost structure is essential before optimising any replenishment policy.

Lesson 1 • Reorder Point and Safety Stock

Calculates reorder points using lead time and demand variability data. Safety stock protects service levels against uncertainty in supply and demand.

Lesson 2 • Periodic Review Systems

Explains fixed-interval ordering and the order-up-to level model. Contrasts periodic review with continuous review to guide system selection.

Lesson 3 • Just-in-Time and Lean Replenishment

Introduces JIT principles and kanban-based pull systems for waste reduction. Shows how lean replenishment reduces inventory while maintaining flow.

Lesson 4 • Economic Order Quantity Model

Derives the EOQ formula and explains its assumptions and limitations. Provides the baseline replenishment model from which all variations are built.

Lesson 1 • Inventory Accuracy and Cycle Counting

Establishes cycle counting programmes to maintain perpetual inventory accuracy without full shutdowns. Accurate records are the foundation of all replenishment and reporting systems.

Lesson 2 • Storage Systems and Equipment

Surveys pallet racking, shelving, carousels, and automated storage systems. Equipment selection depends on SKU profile, throughput, and space constraints.

Lesson 3 • Warehouse Layout and Design Principles

Covers slotting, flow paths, and zone design for efficient picking and storage. Good layout directly reduces labour cost and order cycle time.

Lesson 4 • Picking Methods and Order Fulfilment

Compares discrete, batch, zone, and wave picking strategies for order accuracy and speed. Picking method selection is driven by order volume and SKU count.

Lesson 1 • IoT and Emerging Tracking Technologies

Surveys sensor networks, smart shelves, and connected devices extending inventory visibility. Prepares students to evaluate next-generation tracking investments.

Lesson 2 • Barcode and Scanning Technology

Explains 1D and 2D barcode standards and scanning hardware for inventory tracking. Barcoding is the most widely deployed identification technology and the entry point for automation.

Lesson 3 • Inventory Data and Reporting Dashboards

Teaches how to build and interpret inventory KPI dashboards for operational decisions. Data visibility enables proactive management rather than reactive firefighting.

Lesson 4 • Warehouse Management Systems

Introduces WMS core modules including receiving, putaway, picking, and reporting. WMS is the central software platform coordinating all warehouse inventory activities.

Lesson 1 • Multi-Echelon Inventory Planning

Explains how inventory is positioned across distribution centres, regional hubs, and stores. Optimising stock placement across echelons reduces total system inventory.

Lesson 2 • Demand-Supply Synchronisation

Applies sales and operations planning (S&OP) to align inventory with business plans. S&OP bridges the gap between demand forecasts and supply capacity decisions.

Lesson 3 • Supply Chain Risk Identification

Categorises supply disruption risks including supplier failure, logistics delays, and demand shocks. Risk identification is the first step in building a resilient inventory strategy.

Lesson 4 • Contingency Planning and Buffer Strategies

Designs buffer stock, dual sourcing, and emergency procurement plans for disruption scenarios. Proactive planning reduces the cost and duration of supply interruptions.

Lesson 1 • Inventory Reduction Initiatives

Identifies and executes systematic programmes to reduce excess and obsolete inventory. Reduction frees working capital and improves warehouse utilisation.

Lesson 2 • Service Level Optimisation

Balances customer service targets against inventory investment using fill rate and cycle service level models. Quantifies the cost of each incremental service level improvement.

Lesson 3 • Inventory Segmentation Strategies

Applies multi-dimensional segmentation to tailor replenishment, storage, and service policies by SKU group. Segmentation prevents one-size-fits-all policies that waste resources.

Lesson 4 • Continuous Improvement in Inventory

Applies Lean and Six Sigma tools to identify and eliminate inventory process waste. Embeds a culture of ongoing measurement and improvement in inventory operations.