figure 7-7. NAVRESSO then submits the analysis
to your type commander. The type commander
uses the analysis to evaluate your ships store
operation. In this way, the type commander can
spot any ships store that might be in trouble and
in need of help. On the bottom part of the opera-
tions analysis statement, NAVRESSO provides
comments that are directed specifically to the type
commander for guidance.
The primary purpose of the operational
analysis is to point out stock turn and per-
formance errors in other phases of your ships
store operation. NAVRESSO derives the analysis
of your ships store operation by using your
figures on the NAVCOMPT 153 and the follow-
ing formulas. (Refer to the caption numbers
on the Operational Analysis report in figure
Ships store stock turn equals the total of cap-
tions 2 (cost of retail sales), 5 (operating expenses),
9 (bulk sales), 10 (transfers to O.S.O.), 12 (cost
of salesVM), and 13 (cost of operating VM)
divided by the ships store opening inventory (cap-
Gross profit equals retail sales (caption 1)
minus cost of retail sales (caption 2).
Average sales per person/per month (at cost)
equal a total of captions 2 (cost of retail sales),
5 (operating expenses), 12 (cost of salesVM),
and 13 (cost of operating VM) divided by the
number of persons supported (caption 22).
Vending machine profit percentage equals
vending machine profit (caption 14) divided by
drink vending machine sales (caption 11).
Amusement machine profit percentage equals
amusement machine profit (caption 16) divided
by amusement machine sales (caption 15).
Notice that stock turn is based on the open-
ing or closing inventory only rather than on the
average inventory for the period. As ships stores
are on a 4-month accounting period rather than
a monthly accounting period, the use of an
average inventory will not significantly alter the
stock turn. For this reason, NAVRESSO uses the
opening or closing inventory in the operational
Among the comments, the most common
complaint is the failure of a ships store to meet
the 1.33 stock turn ratio. This error usually results
whenever a ships store holds too much inventory
in relation to sales. Upon examination of ships
store returns, NAVRESSO has found that when
ships repeatedly fail to meet the required stock
turn, these ships are usually overstocked on
The operational analysis is designed to help
you to improve your ships store operation. If you
are having problems or if you simply desire more
information to keep your ships store up-to-date,
remember that NAVRESSO is only a telephone
call away. NAVRESSO is always ready and will-
ing to give you assistance.
Whenever you conduct your own internal
analysis of your ships store operation from your
records and returns or you receive the results of
an external analysis, the following management
objectives will serve as excellent guidelines for an
operationally sound ships store. Review these
guidelines periodically as you review your own
records and returns. Throughout your ships store
operation, use these guides to achieve your desired
1. You are required to make four stock turns
per year. You will attain this annual goal by
achieving a stock turn of at least 1.33 per
2. Conduct a monthly review of all stock and
all stock records.
3. You must attain a gross profit of approx-
imately 15 percent to cover your general operating
expenses, such as the General Fund assessment,
cost of operations, markdowns, and surveys, and
so you will not jeopardize your profits available
for transfer to the Recreation Fund.
4. Maintain the cost of operations expense at
2.5 percent, but not more than 5 percent of sales
per accounting period.
5. Your canned-drink vending machine profit
is based on the cost and selling price of sodas.
Your can-type soft drink net vending machine
profit should be at least 32 percent of your can-
type soft drink vending machine sales.
6. Use the guidelines in the NAVSUP P-487
to attain your planned operating profit for the
fountain service operation.
7. Maintain an in-stock position of all items
of reoccurring demands. Keep your inventories
within the prescribed limits.