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Elements and Performance Criteria

  1. Assess projected demand
  2. Information/data from sales plan or stock movement is analysed
  3. Projected high and low volume periods are determined from the analysis of sales plan and/or stock movement data
  4. Seasonal nature of stock demand is determined from the analysis of sales plan and/or stock movement data
  5. Required inventory levels at different production and sales cycle stages are determined from the analysis of sales plan and/or stock movement data
  6. Assess variables that impact on optimum stock levels
  7. Stock manufacturing/supply and consignment delivery lead times are determined
  8. Internal processing and distribution times are determined
  9. Spoilage and obsolescence times are calculated as required
  10. Maximum stock carrying capacity is assessed
  11. Physical and human resources are assessed in relation to projected required stock levels
  12. Contingencies are developed for abnormal distribution stoppages/slow-downs to supply chain
  13. Determine optimum inventory levels
  14. Production and sales cycle stages are correlated to stock manufacturing supply and distribution lead times
  15. Safety stock levels are calculated
  16. Optimum inventory levels are identified
  17. Monitor optimum inventory levels
  18. Inventory benchmarks are continually compared to current and known future sales turnover/production requirements
  19. Adjustments to inventory levels are undertaken in accordance with reassessed sales turnover/production requirements, workplace procurement processes and within scope of authority
  20. Changes and/or requests for adjustments to inventory levels are documented in accordance with workplace policies
  21. Resources are assembled in accordance with identified optimum inventory levels

Performance Evidence

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria on at least one occasion and include:

applying relevant legislation and workplace procedures

communicating and working effectively with others

completing relevant documentation

modifying activities depending on operational contingencies, risk situations and environments

planning and organising resource availability including the competencies of individuals in a team or group

reading, interpreting and following relevant instructions, procedures and policies

reporting and/or rectifying identified problems, faults or malfunctions promptly, in accordance with regulatory requirements and workplace procedures

selecting and applying relevant technology, information systems and procedures

working systematically with required attention to detail without injury to self or others, or damage to goods or equipment.


Knowledge Evidence

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria and include knowledge of:

Australian codes and regulations relevant to optimising stock levels

computer records/documentation requirements when assessing and monitoring optimum stock levels

focus of operation of supply arrangements, resources, management and workplace operating systems

problems that may occur when assessing and monitoring optimum stock levels and appropriate action that can be taken to resolve these problems

purpose and use of key information required when optimising stock levels including supply requirements, supplier information, enterprise contract procedures, sales plan and distribution times

workplace business policies and plans including procedures for maintaining confidentiality

workplace procedures and policies for assessing and monitoring optimum stock levels

worksite layout and organisational structure.