MBA Semester III - K. K. Wagh Education Society

(303D)- INVENTORY MANAGEMENT & MATERIAL REQUIREMENTS
PLANNING
1. Inventory Management: Inventory concept; need for inventory; types of inventory,
functions, use; Dependent and Independent Demand, Responsibility for inventory management.
(6)
2. Strategic Inventory Management: Objectives and Importance of the inventory management
function in reference to Profitability, Strategy, customer satisfaction and Competitive Advantage.
(2)
3. Inventory Control Techniques: Inventory classification and its use in controlling inventory,
Setup time and inventory control, safety stock determination considering service level. Strategies
to increase Inventory Turns, Reduce throughput time, Reduce WIP, eliminate waste, and reduce
inventory level in service and manufacturing organizations. (10)
4. Inventory Models: Inventory models – Fixed Order Versus Fixed Interval systems –
Developing Special Quantity Discount Models – Inventory Model for Manufactured Items –
Economic Lot Size when Stock Replenishment is instantaneous – Non-instantaneous
Replenishment Models – Inventory Models with uncertainty – Probabilistic Inventory Models –
Models with Service Levels and Safety Stock. (12)
5. Material Requirement Planning Systems (MRP): Meaning, purpose and advantage of
MRP, Data Requirements and Management – Files and Database – Updating Inventory Records
– Bill of Materials, types of BOM, Modular BOM, Master Production Schedules - meaning,
objectives process. Managing MPS inventory records, lot sizing, process of MRP, and output of
MRP. Introduction to MRPII systems. Using Distribution Resource Planning to manage
inventories in multiple locations. (12)
6. Make Or Buy Decisions: Concept of outsourcing, Factors influencing Make Or Buy
Decisions, Trends in Make Or Buy Decisions in context of core competency. (4)
7. Materials Management In Jit Environment: Zero inventory concept, Excess Inventory: A
Roadblock to World-Class Manufacturing, Materials management in JIT environment, Vendor
Managed Inventory, vendor relationship in JIT context. (9)
8. Performance: Evaluation of Performance Of Materials Function - Criteria and methodology
of evaluation. (5)
Books Recommended:-