Curricular Unit:Code:
Inventory Management987GSTK
Year:Level:Course:Credits:
2UndergraduateBusiness Sciences4 ects
Learning Period:Language of Instruction:Total Hours:
Portuguese/English52
Learning Outcomes of the Curricular Unit:
Knowledge and skills:
- Explain the importance of inventory management in an organization;
- Perform an ABC analysis and forecast demand as a source of information for inventory management;
- Explain the reasoning behind the economic order quantity;
- Distinguish the different assumptions of inventory management models in order to identify the most appropriate model for each context;
- Calculate the economic order quantity for an item for different models;
- Measure the effects of moving away from the economic order quantity;
- Recognize the types of uncertainty related to inventories and the need for probabilistic models;
- Calculate a reorder level (continuous review methods) and a target level (periodic review methods).
Competences:
- Ability to participate actively and effectively in inventory management;
- Ability to solve problems;
- Ability to summarize and communicate the results, orally and in management reports;
- Ability to work independently.
Syllabus:
The syllabus presented covers the essential areas of knowledge and consistently achieves the objectives. In particular:
1 Information for inventory control
1.1 Importance of inventory control
1.2 Types of inventory
1.3 Inventory costs
1.4 ABC analysis
1.5 Forecasting demand.
2 Methods for independent and deterministic demand:
2.1 Instant order replenishment with and without shortages
2.2 No instant order replenishment with and without shortages
2.3 Non-zero lead time
2.4 Price breaks
3 Methods for independent and stochastic demand
3.1 Continuous-review models and the reorder point
3.2 Periodic-review models and the target level
Demonstration of the Syllabus Coherence with the Curricular Unit's Objectives:
1 Information for inventory control. Students will be able to discuss reasons for holding inventories, to identify the sources of information, to describe the costs of inventories, to perform the ABC analysis, to forecast demand
2 Economic quantity models for independent and deterministic demand. Students will be able to distinguish methods for inventory management, to identify situations of application of the different versions of the model, to determine the optimal inventory policy (OIP)
3. Economic quantity models for independent and stochastic demand. Students will be able to recognize the types of uncertainty, to determine the OIP with continuous (reorder point) and cyclical review (target stock)
Teaching Methodologies (Including Evaluation):
The course resorts to theoretical presentations, conceptual clarification, calculus and graphical analysis. Lessons combine theory and practice, and case-study scenarios are analysed. Assessment is based on two midterm tests (50% + 50%).
Demonstration of the Coherence between the Teaching Methodologies and the Learning Outcomes:
The combination of theoretical presentations and problem solving tasks enables students to acquire specific theoretic knowledge in inventory management, as well as to practice its application to specific case-scenarios.
Reading:
Carvalho, J. C. Eds. (2020). Logística e Gestão da Cadeia de Abastecimento, 3ª Ed. Lisboa: Edições Sílabo.
Lopes, J., Pimentel, B., Pinto, J., Soares, J. e Nunes, S. (2020). Gestão da Produção e Operações. Lisboa, Escolar Editora .
Reis, R. L. (2010). Manual de Gestão de Stocks – Teoria e Prática, 3ª Ed. Lisboa: Editorial Presença.
Taylor III, B. W. (2019). Introduction to Management Science, 13/e. New Jersey: Pearson.
Themido, I. H., Tavares L.V., Oliveira, R.C. e Correia, F.N. (1996). Investigação Operacional. Lisboa: McGraw Hill Portugal.
Waters, Donald (2003). Inventory Control and Management, 2nd Edition. West Sussex: John Wiley and Sons.
Vários autores. B-On. E.g. Nemtajela, N. and Mbohwa, C. (2016). "Inventory management models and their effects on uncertain demand," 2016 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM), Bali, 2016, pp. 1046-1049. doi: 10.1109/IEEM.2016.7798037.