Inventory levels impact operational performance, customer service, and the cost structure that delivers a product or service. Carrying inventory is costly because it ties up cash and creates risk of obsolescence. Therefore, an inventory management policy aligned to deliver the organization's objectives needs to be in place.
In this course, you will explore the drivers of inventory strategy and compare product life cycles. You will practice using the appropriate models and approaches to match levels of inventory with demand in a way that maximizes profit, and you will determine the optimal policies to manage two types of inventory in a given scenario. Finally, you will recommend strategies to improve operations management in your organization based on the principles of the Toyota Production System.
The following courses are required to be completed before taking this course:
- Process Analysis in Operations
- Improving Operations
- Quality Control Systems
Key Course Takeaways
- Calculate service-level metrics to determine how likely an organization is to fulfill a customer request
- Use the Newsvendor Model to match levels of inventory with demand in a way that maximizes profit for short life cycle products
- Use the EOQ Model to match levels of inventory with demand in a way that maximizes profit for long life cycle products
- Recommend TPS-derived strategies to improve operations management in your organization
How It Works
Who Should Enroll
- Managers and executives
- Business analysts
- MBA students