The classifications of different types of inventory, such as:

• Opening stock, work in progress and finished goods
• Safety stocks
• ABC classifications of stock that may apply
• Dependent demand and independent demand items of stock

Explain to colleagues and other internal stakeholders the classifications of inventories supplied by the organisation

The direct and indirect costs of holding inventories

Explain the direct costs and the indirect costs associated with holding inventories. Take actions to reduce costs while mitigating any negative impact on service levels

The main techniques associated with managing inventories including:

• Reorder quantities
• Reorder levels
• MRP and MRPII
• Just-in-Time

Compare inventory management techniques and use appropriate techniques to manage inventories

The use of bar coding in inventory operations

Use bar coding to select and control the range of stock items held by the organisation

The use of materials planning to manage inventories

Carry out the effective and efficient planning and control of inventories, such as by receiving, issuing, scheduling, standardising and inspecting inventories