Principles of Inventory Control 

What is the purpose of this course?


377361 – Understand the role of inventory and ordering costs

This unit standard is required by people working in the manufacturing environment and tasked with inventory management. The learner will understand and apply the various concepts associated with inventory, will obtain knowledge of ordering cost and perform inventory valuations.

 

377363 – Apply inventory replenishment and distribution systems

This unit standard is required by people working in the manufacturing environment and who need to understand the concepts, review methodologies and lot sizing techniques.

 

377364 – Discuss the role of inventory in a manufacturing environment

This unit standard is required by people working in the manufacturing environment who need to understand the importance of inventory in a manufacturing environment; distribution management and required functions; the importance to relate inventory to customer service.



What will I learn?


Qualifying learners will be able to:

377361 – Understand the role of inventory and ordering costs

  • Explain the role of inventory in manufacturing and distribution.

  • Discuss and apply various concepts of ABC analysis.

  • Discuss the elements of ordering costs.

  • Perform inventory valuation.

  • Demonstrate an understanding of financial accounts as they relate to inventory management.

 

377363 – Apply inventory replenishment and distribution systems

  • Determine the re-order point.

  • Explain the concept Economic Order Quantity (EOQ).

  • Discuss and apply various order review methodologies.

  • Demonstrate knowledge and application of a number of lot sizing techniques.

  • Explain distribution management.

  • Describe and plan carriers’ operations.

  • Discuss factors that determine the location of a facility.

  • Explain and apply Distribution Requirements Planning (DRP).

  • Discuss and apply a number of distribution ordering models.

 

377364 – Discuss the role of inventory in a manufacturing environment

  • Discuss the concept of an inventory.

  • Explain and perform ABC analysis of inventory.

  • Explain purchasing and manufacturing lead time.

  • Calculate relevant inventory costs.

  • Compare order quantity costs.

  • Explain the concept of safety stock.

  • Explain distribution management and required functions.

  • Relate inventory to customer service.

  • Discuss factors that determine the location of a facility.

  • Explain Distribution Requirements Planning (DRP).

  • Discuss a number of distribution ordering models using given examples.

  • Discuss the importance of customer service.



 What is the pre-requisite for this course?


It is assumed that you are competent in:

  • Communication at NQF Level 3. 

  • Mathematical literacy at NQF Level 3.



 How long will it take me?


230 Notional hours

(23 Credits. Each credit = 10 hours)



What do I get?


A certificate of competence and your results will be uploaded on the NLRD (National Learner Database)



SAQA QUAL ID:  SP 0867/13-17

NQF Level:  3 & 4 (Combination)

Credits: 23

SETA:  merSETA

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