Unit of competency Outline

Date retreived
23/07/2026 6:17 AM AWST

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Assess and monitor optimum stock levels

Assess and monitor optimum stock levels

Unit of competency
National Code
TLIA4028A
State Code
D4923
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
07/03/2011
State Implementation and Classification
Approved Date
20/06/2014
Field of Education
089901 - Purchasing, Warehousing And Distribution
Original Release Date
20/06/2014
Nominal Hours
40
Description
This unit involves the skills and knowledge required to assess and monitor optimum stock levels in accordance with workplace requirements including assessing projected demand, assessing variables that impact upon optimum stock levels, determining optimum inventory levels, and monitoring optimum inventory levels. Licensing, legislative, regulatory or certification requirements are applicable to this unit.
Notes
Elements and Performance Criteria
1Assess projected demand
  • 1.1 Information/data from sales plan or stock movement is analysed
  • 1.2 Projected high and low volume periods are determined from the analysis of sales plan and/or stock movement data
  • 1.3 Seasonal nature of stock demand is determined from the analysis of sales plan and/or stock movement data
  • 1.4 Required inventory levels at different production and sales cycle stages are determined from the analysis of sales plan and/or stock movement data
2Assess variables that impact upon optimum stock levels
  • 2.1 Stock manufacturing/supply and consignment delivery lead times are determined
  • 2.2 Internal processing and distribution times are determined
  • 2.3 Spoilage and obsolescence times are calculated (where applicable)
  • 2.4 Maximum stock carrying capacity is assessed
  • 2.5 Physical and human resources are assessed in relation to projected required stock levels
  • 2.6 Contingencies are developed for abnormal distribution stoppages/slow-downs to supply chain
3Determine optimum inventory levels
  • 3.1 Production and sales cycle stages are correlated to stock manufacturing supply and distribution lead times
  • 3.2 Safety stock levels are calculated
  • 3.3 Optimum inventory levels are identified
4Monitor optimum inventory levels
  • 4.1 Inventory benchmarks are continually compared to current and known future sales turnover/production requirements
  • 4.2 Adjustments to inventory levels are undertaken in accordance with reassessed sales turnover/production requirements, workplace procurement processes and within scope of authority
  • 4.3 Changes and/or requests for adjustments to inventory levels are documented in accordance with workplace policies
  • 4.4 Resources are assembled in accordance with identified optimum inventory levels
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance.
Work may involve:
twenty-four hour operation
in a range of work environments
by day or night
Customers may be:
internal or external
Workplaces may comprise:
large, medium or small worksites
Work may be conducted in:
limited or restricted spaces
exposed conditions
controlled or open environments
Work:
applies to predominantly manual operations
does not include a total computer generated purchasing system operation
Inventory benchmarks may be:
periodic, monthly or annual
Lead times may vary in accordance with:
type of transport mode(s)
processing time
regulatory requirements
freight disputations
customs regulations
scarcity of resource
Information used when assessing and monitoring optimum stock levels may include:
supply requirements
supplier information
workplace contract procedures
sales plan
distribution times
Consultative processes may involve:
other employees and supervisors
suppliers, customers and clients
relevant authorities and institutions
management and union representatives
industrial relations and OH&S specialists
other maintenance, professional or technical staff
Communication in the work area may include:
phone
electronic data interchange (EDI)
fax
email
internet
RF systems
oral, aural or signed communications
Inventory systems may be:
automated
manual
paper-based
computerised
microfiche
Depending on the type of organisation concerned and the local terminology used, workplace procedures may include:
company procedures
enterprise procedures
organisational procedures
established procedures
Information/documents may include:
relevant workplace quality specifications, policies and procedures
Australian regulations and codes of practice relevant to stock management
manufacturers specifications and/or suppliers handling and storage advice
supplier and/or client instructions
workplace business policies and plans including procedures for maintenance of confidentiality
operations manuals, job specifications and induction documentation
ADG Code and associated regulations
material safety data sheets
relevant Australian standards and certification requirements
conditions of service, legislation and industrial agreements including award details, enterprise bargaining agreement, other industrial arrangements
emergency procedures
Applicable regulations and legislation may include:
codes and regulations relevant to the optimisation of stock levels including the ADG Code
relevant state/territory OH&S and environmental protection legislation
licence, patent or copyright arrangements
water and road use and licence arrangements
export/import/quarantine/bond requirements
workplace relations regulations
workers compensation regulations
EVIDENCE GUIDE
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required knowledge and skills, the range statement and the assessment guidelines for this Training Package.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
The evidence required to demonstrate competency in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria of this unit and include demonstration of applying:
the underpinning knowledge and skills
relevant legislation and workplace procedures
other relevant aspects of the range statement
Context of and specific resources for assessment
Performance is demonstrated consistently over a period of time and in a suitable range of contexts
Resources for assessment include:
a range of relevant exercises, case studies and/or other simulated practical and knowledge assessment, and/or
access to an appropriate range of relevant operational situations in the workplace
In both real and simulated environments, access is required to:
relevant and appropriate materials and equipment, and
applicable documentation including workplace procedures, regulations, codes of practice and operation manuals
Method of assessment
Assessment of this unit must be undertaken by a registered training organisation
As a minimum, assessment of knowledge must be conducted through appropriate written/oral tests
Practical assessment must occur:
through activities in an appropriately simulated environment at the registered training organisation, and/or
in an appropriate range of situations in the workplace
Replaced By
State Code National Code Title Type
AVK96 TLIA4028 Assess and monitor optimum stock levels Unit of competency