Inventory Management

This page describes the course goals, grading, and so on, of the course Inventory Management. In case some points are unclear, typo’s, etcetera, please let me know at n.d.van.foreest@rug.nl

Overview of the Course

The course Inventory Management provides knowledge and develops skills to design and analyse inventory management practises and to apply models in order to improve company performance. Spread sheet modelling skills are essential. Topics that will be discussed are Demand forecasting; Lead time demand distribution, Service levels, and Non-stationary Inventory control.

The module Inventory Management aims to provide students with the necessary knowledge and skills to analyse and improve an actual inventory control problem and reflect on the required methods to manage the inventory.

The course assumes that all student are already familiar with basic inventory control concepts, such as economic order quantity, reorder point, order-up-to level, lead time demand, and safety stock. This knowledge has been provided in undergraduate courses as well as other master courses in the field of supply chain, technology, and operations management.

However, knowledge of basic concepts is in general not sufficient in order to improve actual inventory management problems. First, in practice often a lot of information is available, but the quality of information is not always as required. Next, many practical problems are more complex and cannot be solved using the simple models which are described in the text books. New models need to be designed based on modifications of existing models and insights published in literature. The assumptions behind the models are often not valid and need to be checked.

This module guides students through some actual inventory management projects. It helps students to analyse inventory management data, identify control practices, search for suitable models, design modified models, and apply these models to improve the performance.Moreover, the module trains students to critically assess recent papers or submitted manuscripts in order to determine the added value for the theory and practice of inventory management.

In summary: upon completion of the course the student is able to: 1. analyse inventory management practices 2. apply inventory control models 3. design procedures to improve inventory management in practice 4. review recent papers in the field of inventory management

Goals

Upon completion of the course the student is able to: 1. analyse inventory management practices 2. apply inventory control models 3. design procedures to improve inventory management in practice 4. review recent papers in the field of inventory management

Organization

The course consists of a set of lectures and tutorials. The topics per lecture are indicated in the notes document which can be found on Nestor. The reading material is Factory Physics, Edition 3, Chapters 2, 13.3, and Chapter 17.

Group assignment in first six weeks, with weekly poster presentations.

Examination and Grading

To pass the course it is necessary to:obtain at least a 5.5 for the written exam at the end of the course. The exam will be based on

  • The chapters and sections to be prepared and/or studied
  • The problems of the book and variations thereof

The exam is open book, which means that you are allowed to use Factory Physiscs during the exam, but nothing else, i.e., no worked solutions of exercises, none of the assigned master theses, and so on.

Entry Conditions

The students should master at least the contents of Chapter 1 and 3 of Factory Physics.

  • model building in Excel
  • basic statistics and stochastics
  • mathematics of inventory theory
  • inventory control methods, such as

o time series analysis, o economic ordering, o material requirements planning, o safety stock, and o reordering systems.

Contact info

Secretary office: Dui-634 Phone: 050-3637020 E-mail: secr.operations.feb@rug.nl