Maricopa Community Colleges  MGT184   19942-20035 
Official Course Description: MCCCD Approval: 11/23/93
MGT184 19942-20035 LEC 3 Credit(s) 3 Period(s)
Production and Inventory Management
Elements of production control and inventory control policies, functions and techniques. Roles and responsibilities of inventory management production control. Prerequisites: MGT102 or permission of department.
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MCCCD Official Course Competencies:
 
MGT184   19942-20035 Production and Inventory Management
1. Compare and contrast, make-to-stock, assemble-to-order, and make-to-order manufacturing environment. (I)
2. List specific classifications of inventory and define associated cost, analysis techniques, and performance measures. (II)
3. Explain the conflicting objectives and trade-offs between the costs of inventory and the benefits they provide. (II)
4. Explain the importance of forecasting and its impact on inventory and service levels. (III, IV)
5. Calculate inventory replenishment using specific techniques and demonstrate the benefits of each. (V)
6. Define distribution inventory management and explain it's integration with the inventory planning system. (VI)
7. Describe the execution function of production activity control and explain the importance that it plays in closing the loop of the MRP system. (VII)
8. Apply the various project management techniques such as PERT/CPM to the control and management of a specific project. (VIII)
9. Demonstrate the theory of constraints approach and describe it's impact on material requirements planning and just-in-time. (IX)
10. Describe the overall management of production and inventory planning and control activities, functions, and systems. (X, XI)
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MCCCD Official Course Outline:
 
MGT184   19942-20035 Production and Inventory Management
    I. Production and inventory managment environment
        A. The product positioning strategy
          1. Make-to stock
          2. Assemble-to order
          3. Make-or engineer-to order
        B. Production process designs
        C. Distribution process design
        D. Technological choices
        E. Production and inventory management functions
      II. Inventory management: an overview
          A. Inventory decisions
          B. Functional classifications
          C. Performance measures
          D. ABC analysis
          E. Inventory costs/benefits
            1. Relevant, opportunity, and sunk costs
            2. Incremental costs, cost breakpoints, and marginal costs
            3. Direct, indirect, and overhead costs
            4. Fixed and variable costs
            5. Actual costs and standard cost
            6. Intangible costs
          F. Inventory decision costs
            1. Preparation costs
            2. Carrying costs
            3. Stockout costs
            4. Capacity related costs
        III. Independent demand inventory management
            A. Data requirements
            B. Factors in inventory decisions
            C. Forecast accuracy and safety stock policy
              1. Fixed order quantity and the economic order quantity
              2. Order release decisions
              3. The statistical order point
              4. Periodic review
              5. Hybrid systems
              6. Visual review systems
              7. Time-phased order point system
          IV. Aggregate inventory management
              A. Aggregate inventory investment
              B. Make-to-stock environment
              C. Job shop environment
              D. Management under constraints
                1. Anticipation inventory
                2. Cycle (lot-size) inventories
                3. Buffer stock
            V. Joint replenishment
                A. Joint purchase order quantity
                B. Uncertainty: order quantities and order release
                C. Order release
                D. Calculating preparation costs and carrying costs for joint order quantity
                E. Minimizing the costs of remnants
              VI. Distribution and inventory control
                  A. Distribution inventory control
                    1. Definition
                    2. Pull systems
                    3. Push systems
                  B. Inventory accounting and physical control
                VII. Production activity control
                    A. Scheduling in manufacturing environments
                    B. Queue length management
                    C. Input/output control
                    D. Traditional production activity control information systems
                    E. Production activity control information system requirements
                      1. Planning files
                      2. Control files
                  VIII. Project management (PERT/CPM)
                      A. Background
                      B. Developing a network planning model
                      C. Program evaluation and review technique (PERT)
                      D. The scheduled allocation of resources
                      E. Project control
                      F. Activity-on-the-node (AON) networks
                    IX. Theory of constraints (TOC)
                        A. Simulation model comparing MRP, JIT, and TOC
                        B. Development of the theory of constraints
                        C. Steps of the theory of constraints
                        D. Drum-buffer-rope scheduling
                        E. Duffer management
                        F. Performance management
                        G. Implementation techniques
                      X. Production and inventory management systems
                          A. Definitions
                          B. System concepts
                          C. Management information systems: their development and design
                          D. Production and inventory management information systems
                          E. Current developments
                          F. Technological choices
                        XI. Managing production and inventory management
                            A. Performance objective and measures
                            B. Planning
                            C. Organization
                            D. The management of change
                            E. Human resources management
                            F. Education and training
                            G. Execution
                            H. Control
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