WRITERS

1. MICHAEL K. CHIRCHIR
2. JOASH N. MAGETO

DPS 302 INVENTORY MANAGEMENT

A. COURSE OBJECTIVES

At the end of this course you will be able to:-

• Comprehend the importance of inventory management in an organisation and gain a broad understanding of how inventory management fits into the broader function of supply chain management.

• Explain three broad areas of inventory management, namely; demand forecasting, inventory models and warehousing.

• Apply inventory control models in day to day business management.

B. COURSE CONTENTS

LECTURE 1: INTRODUCTION TO INVENTORY MANAGEMENT 1. Introduction 2. Objectives 3. The Concepts of Inventory and Inventory Management 4. Need for Inventory 5. Importance of Inventory Management 6. Scope of Inventory Management 7. Inventory Costs 8. Summary 9. References

LECTURE 2: INVENTORY CONTROL SYSTEMS
2.1 Introduction
2.2 objectives
2.3 Fixed Quantity System 2.31 Advantages 2.32 Disadvantages
2.4 Fixed Time System 2.41 Advantages 2.42 Disadvantages
2.5 Hybrid Systems
2.6 Summary

LECTURE 3: DEMAND FORECASTING I
3.1 Introduction
3.2 objectives
3.3 meaning of demand forecasting
3.4 Qualitative Judgmental Techniques 3.31 Delphi Method 3.32 Market Survey 3.33 Historical Analogy
3.5 Quantitative methods 3.51 Causal Methods 3.5.1.1 High-Low Method Advantages Disadvantages 3.5.1.2 Visual Fit Method Advantages Disadvantages

3.5.1.3 Simple Regression Analysis Derivation of the Normal Equations Derivation of the Ordinary Least Squares Equation 3.52 Time Series Analysis 3.5.2.1 Components of a time Series 5.32 Naïve method 5.321 Advantages 5.322 Disadvantages 5.33 General Moving Averages 5.331 Advantages 5.332 Disadvantages 5.34 Exponential Smoothing 5.341 Advantages 5.342 Disadvantages

Summary

LECTURE 4: DEMAND FORECASTING II