Description

1.0  Understand methods for the storage and movement of inventory

1.1  Identify the principles, purpose and impact of stores and warehouse design

• Location of stores and warehouses
• Stores and warehouse design
• Factors that influence stores and warehouse layout
• Flow, space utilisation and flexibility

1.2  Explain the use of product coding in inventory operations

• Systems for product coding
• Bar coding
• Order tracking technologies
• The use of RFID technologies

1.3  Contrast the impact of the use of differentwarehousing equipment
Approaches such as:

• Materials handling equipment
• Palletisation and unit loads
• Packing and packaging
• Environmental standards for packaging
• The use of automation in warehousing

2.0  Understand the key elements of effective inventory control

2.1  Differentiate between the different classifications ofinventory

• Opening stock, work in progress, safety stock and finished goods
• Obsolescent and redundant stock
• Direct and Indirect supplies
• ABC classifications of stock that may apply
• Dependent demand and independent demand itemsof stock

2.2 Identify the direct and indirect costs of holding inventory

• Acquisition costs
• Holding costs
• Cost of stock outs
• Discuss options to reduce costs whilst mitigating any negative impact on service levels

2.3 Identify techniques associated with inventory control

• Subjective and objective forecasting
• Re-order quantities and levels
• MRP and MRPII
• ERP
• Just-in-time
• Lean
• Inventory performance measures – lead times, service levels, rate of stock turn, stock outs in a given period, stock cover

3.0  Understand the concept of through life cost

3.1  Analyse the contributing factors when establishing total cost of ownership

• Purchase price
• Hire or lease
• Acquisition costs
• Usage costs
• Maintenance costs
• Operation
• Utilities
• Training
• Disposal and end-of-life costs

3.2  Compare the factors to consider when building a total cost of ownership model

• Include all costs
• Use best estimates of values available
• Hidden costs – global sourcing, risks associated with extended supply chain
• Only develop for larger purchases
• Ensure senior management support
• Cross functional support – ensure access to data
• Team working – reduce data collection time

3.3 Identify the contributing elements to end-of-life costs

• Decommissioning
• Removal or disposal processes
• Legal aspects – waste management
• Environmental factors
• Triple bottom line – people, planet, profit