COURSE DESCRIPTION
If money makes the world go €˜round, inventory makes logistics go €˜round. The
planning, storing, moving, and accounting for inventory are the basics of
logistics; inventory availability is the most important aspect of customer
service; and inventory carrying costs are typically the most expensive aspect of
logistics management. Recognition of the critical role of inventory has launched
a variety of industry-wide inventory reduction initiatives including efficient
consumer response and efficient food service response in the food and grocery
industry, quick response in the textiles industry, continuous flow manufacturing
in electronics manufacturing, and just-in-time in auto manufacturing. Despite
all these initiatives to reduce inventory in the supply chain, there remain
legitimate, value-added forms of inventory in the supply chain including service
inventory, pipeline inventory, contingency inventory, safety stock, efficient
manufacturing inventory, and efficient procurement inventory.
Managing these inventories to simultaneously increase fill rates and
inventory turns is the basis for the principles featured in this course. We
address in turn inventory terms and notations, inventory management performance
measures, inventory activity profiling, forecasting methodology and systems,
order quantity engineering, replenishment schemes, fill rate planning,
procurement and purchasing, deployment strategies, inventory organization
requirements, and inventory management system alternatives.
DIRECTOR
Edward H. Frazelle, Ph.D., founding director of The Logistics Institute
(TLI) at Georgia Tech and President and CEO of Logistics Resources
International, directs TLI€™s certificate program, the Logistics Management
Series. As an educator, Dr. Frazelle has trained more than 20,000 professionals
in the principles of world-class logistics and has assisted more than 100
corporations and governmental agencies in the U.S., Canada, Europe, Japan, and
South America in their pursuit of world-class logistics. He has authored,
co-authored, and contributed to eight books and has written numerous articles on
logistics which have appeared in various professional publications. He is a
popular speaker at logistics conferences and symposiums both in the U.S. and
abroad.
Dr. Frazelle€™s achievements have been recognized by the Council of Logistics
Management (Doctoral Research Grant), the Warehousing Education and Research
Council (Burr Hupp Fellowship), the Material Handling Institute (MHEF
Fellowship), the Institute of Industrial Engineers (Armstrong Award), and Kodak
(Educational Grant Award).
As the valedictorian graduate from North Carolina State University, Dr.
Frazelle received the M.S. degree from the School of Industrial Engineering. He
continued his studies at the Georgia Institute of Technology and received the
Ph.D. degree in Industrial and Systems Engineering. Following his graduation
from Georgia Tech, he served on the faculty and subsequently established The
Logistics Institute, the world€™s largest center for logistics education and
research. He continues to be an integral part of TLI€™s educational
program.
LOGISTICS MANAGEMENT SERIES APPROACH TO EDUCATION
Less than one-third of all logistics projects are successful. Logistics
productivity in the United States is stagnant. Logistics technology is not
delivering satisfactory business results and in many cases is counterproductive.
One major contributing factor to the lack of success in logistics initiatives is
that most professionals working in logistics are not educated in logistics. In
fact, less than 5% of the professionals working in logistics have an
undergraduate, graduate, or professional logistics degree. The Logistics
Management Series was created to close the educational gap in logistics. The
four comprehensive educational courses help prepare logistics professionals for
current and future logistics problem solving situations. It was specifically
designed for logistics professionals and managers, across the entire supply
chain (procurement, manufacturing, distribution, transportation, warehousing,
and retail), who need university-based education and credentials to prepare them
for increasing responsibilities in logistics and supply chain
management.
LOGISTICS STUDY TOURS
A facility tour culminates each course offering allowing attendees to see
first hand the benefits of deploying comprehensive logistics strategies. The
techniques and methodologies covered by Dr. Frazelle are illustrated by touring
a distribution facility that is optimizing innovative strategies and advanced
systems in logistics management such as dynamic picking systems, voice
activation technologies, complex material handling systems, electronic repair
services, and advanced productivity management systems.
COURSE OUTLINE
1. The Role of Inventory Management in Logistics and
Business
a. Inventory Master Planning
b. Manufacturing
Inventory Management
? c. Distribution Inventory Management
2. Inventory Management Facts and Fundamentals
?a. The
Bullwhip Effect and How to Counteract It
?b. Push vs. Pull Techniques and
How to Decide
?c. How to Handle Stockouts
3. Inventory Activity Profiling and Data Mining
?a.
Inventory Value Analysis
?b. Inventory Data Mining Techniques
4. Inventory Performance, Cost and Value Measures
?a.
Financial Measures of Inventory Performance
i. Gross Margin Return on
Inventory
ii. Inventory Cost to Sales Ratios
?b. Productivity
Measures of Inventory Performance
i. Inventory Turns
ii.
Inventory Days On Hand
?c. Quality Measures of Inventory
Performance
i. Perfect Order Percentage
ii. Fill Rate
Measures and Benchmarks
iii. Inventory Quality Ratio
iv. How
to Measure and Improve Inventory Accuracy
v. Forecast Accuracy
?
d. Benchmarks for Inventory Performance
5. Forecasting Tips, Tricks, Techniques, and
Technology
?a. How to Reduce, Measure and Manage Demand
Variability
?b. Collaborative Forecasting
?c. How to Improve
Forecast Accuracy
?d. How to Forecast for Seasonality, Promotions, and
Slow Moving Items
?e. How to Measure and Correct Forecast Bias
?f.
Best-Fit Forecasting Techniques and Systems
6. Order Quantity Engineering
?a. How to Measure and
Reduce Purchase Order Costs
?b. Economic Order Quantity
Applications
?c. How to Set Optimal Order Quantities
?d. How to
Reduce Supply Chain Lead Times
??e. How to Reduce Manufacturing Setup
Times
7. Safety Stock Optimization and Fill Rate Planning
?
a. How to Determine Optimal Safety Stock Levels
?b. How to Determine
Optimal Service Levels
8. Inventory Control Policies
?a. How to Set and
Manage Reorder Points
?b. Continuous Replenishment Systems
?c.
Network Control Policies
i. MRP
ii. DRP
?d.
Collaborative Planning, Forecasting & Replenishment (CPFR)
9. Inventory Deployment
?a. Cycle Counting
Methods
?b. Dynamic Deployment
?c. Global Inventory
Visibility
?d. Four-Wall Inventory Management
?e. Postponement
Principles
WHAT ATTENDEES ARE SAYING
"Dr. Frazelle's principles of logistics problem solving have been
instrumental in our dramatic reductions in inventory and increases in customer
service levels."
- Scott Fleener, Vice President, Supply Chain
Management, QWEST Communications
"Dr. Frazelle makes logistics theory practical. He puts logic back in
logistics."
- Carliss Graham, Director, Transportation,
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