Inventory and Material Management Practice Exam

About Inventory and Material Management
Inventory management refers to the process of ordering, storing and using a company's inventory. This includes the management of raw materials, components and finished products, as well as warehousing and processing such items.

Materials and inventory management is the cornerstone of effective supply chain management. When the proper inventory management methods and material management system are in place, enterprises can enjoy the benefits of strategic cost management.

People, process, and automation infrastructure all play key roles in proper materials and inventory management. Without all of the three legs, you have an unstable foundation for your business.

Why is Inventory and Material Management important?
The importance of inventory and material management is due to benefits it provides, as
•    The material cost content of total cost is kept at a reasonable level. Scientific purchasing helps in acquiring materials at reasonable prices. Proper storing of materials also helps in reducing their wastages. These factors help in controlling cost content of products.
•    The cost of indirect materials is kept under check. Sometimes cost of indirect materials also increases total cost of production because there is no proper control over such materials.
•    The equipment is properly utilized because there are no break downs due to late supply of materials.
•    The loss of direct labour is avoided.
•    The wastages of materials at the stage of storage as well as their movement are kept under control.
•    The supply of materials is prompt and late delivery instances are only few.
•    The investments on materials are kept under control as under and over stocking are avoided.
•    Congestion in the stores and at different stages of manufacturing is avoided.
•    Accurate Order Fulfilment
•    Better Inventory Planning and Ordering
•    Increased Consumer Satisfaction

Who should take the Inventory and Material Management Exam?
•    Supply Chain Managers.
•    Professionals working in Operations, Manufacturing or Service sectors, Production and Industry
•    Logistics, Purchasing, Customer Relationship Managers
•    Financial Controllers, Accountants, Business Analysts & Consultants
•    Small Business Owners and Operations Managers
•    People working in Production, Manufacturing, Industrial Operations, Business Operations
•    Students

Knowledge and Skills required for the Inventory and Material Management

Candidates gain quick success if they have skills of critical thinking and good communication skills.

Inventory and Material Management Practice Exam Objectives

Inventory and Material Management exam focuses on assessing your skills and knowledge in ABC analysis, EOQ, material planning and forecasting.

Inventory and Material Management Practice Exam Pre-requisite

There are no prerequisites for the Inventory and Material Management exam. Candidates who are well versed  in stores or inventory management can easily clear the exam.

Inventory and Material Management Certification Course Outline
1. Purchasing Procedures
1.1 Purchasing
1.2 Purchasing Systems
1.3 Pricing Objectives
1.4 Selection of Source (Supplier)
1.5 Vendor Management, Legal Aspects E-Procurement Purchase Auction

2. Stores Management
2.1 Introduction
2.2 Stores Systems and Procedures
2.3 Incoming Materials Control
2.4 Radio Frequency Identification (RFID) Technology

3. Inventory Control
3.1 Overview
3.2 Economic Order Quantity( EOQ)
3.3 Codification / Cataloguing
3.4 Management Of Automatic Procurement Items
3.5 ABC Analysis/XYZ Analysis

4. Material Planning
4.1 Need for Material Planning
4.2 Factors affecting Material Planning
4.3 Tools of Material Planning
4.4 Principles and Procedure for Material Planning
4.5 Basic Concepts of MRP (Material Requirements Planning)
4.6 MRP Processing
4.7 Computer Application to MRP Process
4.8 MRP reports - Database recording and maintenance
4.9 Independent and dependent MRP system

5. Materials Budgeting
5.1 Basic Concepts of Materials Budgeting
5.2 Factors affecting Materials Budget
5.3 Materials Budgeting and Accounting

6. Vendor Management
6.1 Supplier Strategy
6.2 System of Vendor evaluation
6.3 Parameters for evaluation of Vendors Performance
6.4 Social Audit
6.5 Total Evaluation
6.6 Vendor Negotiation
6.7 Guidelines for Purchases through Tender and Negotiations
6.8 Purchase Review

7. Material Classification, Standardisation and Codification
7.1 Material Classification for Variety Reduction
7.2 Basic Concepts of Codification
7.3 Systems of Codification
7.4 Classification by Codification
7.5 Objectives and Scope of Standardization
7.6 Simplification or Variety Reduction
7.7 Levels of Standardization

8. Forecasting
8.1 Introduction to Forecasting
8.2 Forecasting Models
8.3 Weighted Moving Average
8.4 Causal Forecasting Models
8.5 Linear Regression Analysis
8.6 Multiple Regression Analysis
8.7 Other Forecasting Methods
8.8 Forecast Error
8.9 Forecast Evaluations
8.10 Forecast Management

Exam Format and Information
Certification name – Inventory and Material Management Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199