Inventory Management Opportunity Assessment

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3.00 hours
Online Self Study

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About the Course

This Online Self-Study course walks the student through a five-step approach for assessing the opportunity for significant improvements within inventory management.

Course Description

In this three-hour Online Self-Study, the users are shown the five steps of a process for assessing potential improvements in inventory cost and customer service. The conclusions are based on a representative sample of SKUs, so individuals do not need to spend months gathering data.

This course identifies the key cost components of an inventory system, as well as other important data that serve as inputs to the analysis.

Drawing on other courses in safety stock and order quantity, this course compares existing inventory models and costs at companies with new, recommended policies. It also provides a framework for analyzing the underlying drivers of cost and service and illustrate which are most powerful for fundamental improvements.

The course is useful for anyone who has not studied inventory management in detail and will be making recommendations for new inventory or supply chain policies.

Learning Objectives

By the end of this course, users will be able to:

  • Find a representative sample of items to use as the basis for assessing the opportunities for improvements to inventory cost and service levels.
  • Determine the current policies in place and the current costs and service levels at the organization.
  • Determine the benefits from changing inventory policies.
  • Recommend how to pursue supply chain and inventory improvements that will significantly improve costs and service.


Specific topics included in this course are as follows:

  • Overview of the 5-Step Procedure
  • Representative Sample of Items
  • Determine Performance/Policies
  • Recommend Improved Policies
  • Compare Current/New Policies
  • Change the Givens