Faculdade de Ciências e Tecnologia

Inventory Management

Code

7214

Academic unit

Faculdade de Ciências e Tecnologia

Department

Departamento de Engenharia Mecânica e Industrial

Credits

6.0

Teacher in charge

Virgílio António Cruz Machado, Virgínia Helena Arimateia de Campos Machado

Weekly hours

5

Total hours

77

Teaching language

Português

Objectives

The main knowledge to be acquired by students with this unit is the methodologies, models and techniques in the inventory management scope. Students should be able to know models support decisions models at the inventory management level, subject to one or several constraints, with deterministic and probabilistic demand and also deterministic and probabilistic replenishment lead time. They should also know decision models for inventory management of style goods and perishable items, the functions of procurement activity, how to select suppliers, and evaluate the performance activity.

With this unit students are expected to develop their skills to analyze activities associated to inventory management in an economic management approach. They should have ability to elect the best methods and techniques to support decisions in order to improve the efficiency and effectiveness of the inventory management. Furthermore, students should also train their skills in interpreting the inventory management performance.

Prerequisites

Preferably third year students.

Subject matter

Introduction: The nature and the importance of inventory management on supply chain management.

Inventory management of items under independent demand: Decision rules for items with time varying demand pattern; Deterministic and stochastic models for items with infinite or finite replenishment rate; economic orders considering quantity discounts, continuous or periodic replenishment under constrained situations. Inventory Management of style goods and perishable items.

Inventory management of items under dependent demand: Material Requirements Planning and Distribution Requirements Planning.

 

Planning and control in multiechelon inventory situations: centralized and decentralized management; Push and pull systems; Waste recovery systems.

Purchasing management: Purchasing activities; Supplier selection and evaluation; Traditional and JIT management; Vendor inventory management.

 

Performance evaluation measures.

Bibliography

Machado, V.H., 2001 "Apontamentos de Gestão de Stocks" FCT/UNL, Caparica, Portugal.

Silver, E.A., Pyke, D.F. e Peterson, R., 1998 "Inventory Management and Production Planning and Scheduling" 3ª ed., John Wiley & Sons, New York.

Vollmann, T.E., et al., 1997 "Manufacturing Planning and Control Systems", 4ª ed., Irwin McGraw-Hill, Boston.

Lynwood, A.J, e Montgomery, D.C., 1974 "Operations Research in Production Planning, Scheduling and Inventory Control", John Wiley & Sons, New York.

Teaching method

In lectures the expositive method is adopted to present concepts, methods and models. Oral questions are frequently made for prerequisite control, knowledge assessment and stimulate students’ participation.

In laboratory sessions the experimental method is adopted. Active methods are used. The students are challenged with multifaceted problems which should be solved. Also, case studies are analysed and discussed. Frequently teamwork is used.

 

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