Inventory Planning and Control OPMT 1192

Upon successful completion of the course, the student will be able to:

• Understand the conflicts between marketing (sales) finance and production when controlling supply, manufacturing planning, and physical distribution
• Understand the hierarchy of controls as it relates to manufacturing - (SP, PP, MPS, MRP, PAC)
• Know the basis of planning systems, achieving forecasts (budgets) and keeping desired inventory levels
• Apply a master production schedule (MPS) to form the link between production planning and manufacturing, scheduling and load leveling
• Establish a material requirements plan (MRP) using lead time and capacities
• Recognize the importance of Capacity Planning and Capacity Management
• Use the master production schedule and the materials requirements plan to release orders through the production activity control (PAC)
• Know how and when to purchase at the right time and the right amount
• Understand the fundamentals of forecasting techniques
• Understand the functions of warehousing, distribution and transportation classifications
• Know how to create effective physical controls and security of stock, inventory accuracy and records
• Learn important formulas to calculate Order points, Safety Stock, Economic Order Quantities and other inventory parameters
• Recognize the importance of inventory management and the effects it has on the business from all aspects including cash flow, aging accounts, purchasing and Owners Equity
• Analyze the requirements for effective warehouse management, including the main elements to consider when determining the size, location, layout and material handling equipment
• Understand basic principles of accounting and how to manages a company with the strategic business plan, S&OP planning through to the PP, MPS and MRP
• Understand basic metrics and KPI's to effectively manage the different levels of the business to achieve the overall business strategic plans

Effective as of Winter 2021