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Capacity and Inventory Management

What is Capacity and Inventory management?

Capacity and inventory management concern the planning and control of the supply or processing side of matching supply and demand.

What is this important?

Capacity can be defined as the maximum amount of production that can be achieved by utilising the internal and external resources of an organisation: especially important in a changing market environment.

Capacity flexibility and effective inventory management may prove to be an essential  tool for meeting the volatile demand of such markets.

What does this course cover?


  • Capacity Planning as a Strategic and Tactical requirement.

  • Constraint theory and Bottleneck analysis.

  • Options for Capacity Expansion.

  • Examining investment options : Break-Even Analysis.

  • How to measure facility effectiveness : Design and Effective capacity analysis.

  • Capacity Planning Decisions : using Decision trees to select the best option.

  • Location analysis: defining the best place to locate the operation : using factorial and other decision-making methods.

  • Inventory planning and control methods.

  • Push versus Pull inventory management philosophies and their role in Just in Time production.

  • Understand the role of Kanbans in JIT philosophy.

  • An overview of Material requirements planning (MRP).

  • The different types of demand : Independent and Dependent.

  • Describe the evolution of Enterprise resource management (ERP) systems.

  • Describe the benefits and costs of ERP systems.

  • Cloud-based SCM –software for improved decision making in the supply chain.

  • Software as a Service (SaaS) systems.

Throughout this session we investigate specific business problems and get the participants to use the  techniques taught to discuss problems, which are relevant, to them : often exposing new light on ongoing situations.