Symptoms of Poor Inventory Management

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3.00 hours
Online Self Study

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About the Course

Learning to spot signs or symptoms of poor inventory management is the first step in improving the management of inventory at a company. This course provides you with information to understand and begin this process.

Course Description

Effective inventory management is critical to the success of any company. Learning to spot signs or symptoms of poor inventory management is the first step in improving the management of inventory at a company. This course focuses on the four areas of a company where inventory management problems typically occur:

  • Customer Service
  • Inventory Control
  • Transportation
  • Store / Warehouse Operations

The course discusses how to identify problems, how to determine what the root causes of those problems are, and how to begin solving inventory management problems.

Learning Objectives

At the end of this course, you should be able to:

  • Describe the criticality of effective inventory management to a company.
  • Identify the major measures of customer service and explain the steps involved in utilizing these measures to determine the level and quality of inventory management at a company.
  • Explain how to determine if a company is not controlling its inventory as effectively as it could be.
  • Describe the most effective ways in which firms should control inventory, focusing on ABC analysis.
  • Identify the four areas within transportation that can contain signs of poor inventory management and describe the specific signs within each area. Also, highlight tips on how to make improvements in each of these areas, if problems do exist.
  • Describe typical inventory management problems within both store and warehouse operations and how to make improvements in both areas.


Topic covered include:

  • Customer service measures and how to use them to identify symptoms of poor inventory management
  • Tradeoffs between customer service and inventory investment
  • Methods of estimating the cost of a stockout
  • Benefits of ABC analysis
  • Use of sales volume data, units sold data, and customer request data in ABC analysis
  • Ways in which effective mode selection can make lead times more dependable, thus improving inventory management
  • How inbound transportation can add "hidden" costs to a company's transportation costs, and what should be done to prevent or lower those costs
  • When and how emergency orders should be utilized to maintain reasonable transportation costs, yet keep high enough levels of customer service
  • Factors that go into replenishment times and that can be looked at to decrease total replenishment time
  • Ways in which sales revenue is lost due to misplaced SKUs at retail stores
  • Common inventory management problems in warehouses, such as uncounted products and space shortages