| |
stock ratios may help you to understand exactly
how stock turn ratios work.
CUMULATIVE
BEGINNING
EXPENDITURES
lNVENTORY
STOCK TURN
$8,000
$6,000
1.33
7,400
6,200
1.19
16,000
10,400
1.54
Now, take another look at the resale cycle
diagram. You should remember that the optimum
stock level (INVENTORY) is defined as a 90-day
supply of stock and that the rate at which this
stock level (INVENTORY) should be turned over
by SALES is defined as a ratio of 1.33 to 1. If
a ratio of 1.33 or above is maintained, then
sufficient WORKING CAPITAL should be
available to you to initiate additional PROCURE-
MENT. In ship’s store management, the inven-
tory control record is the tool you should always
use to maintain a running check on the amount
of WORKING CAPITAL that is available to you.
AUTHORIZED INVENTORY
AND INCREASES
Your initial authorized inventory represents
your ship’s allowance. Your allowance is based
on the number of officers and enlisted personnel
currently on board including embarked staffs,
embarked air groups, Marine Corps detachments,
passengers, or the highest onboard personnel
count, whichever is greater. Generally, the
monetary limitation for a ship’s store stock is
based on $18 per person per month and allows
for a maximum of approximately 3 months’
stock. Service ships, such as ASS, ADs, and ARs,
are authorized an additional $10 per person per
month to support customers from the ships for
which the service ships are providing support. You
should keep in mind that you can obtain
authorized increases of your ship’s store stock if
your ship is being deployed to overseas areas.
Your ship will be authorized an additional $18 per
person per month up to an amount that will not
exceed your overall stockage objective for the
length of time your ship is going to be deployed.
Foreign merchandise from fleet support
warehouses is an authorized addition to your
inventory. To ensure proper stock control, you
should carefully monitor any foreign merchan-
dise you acquire during your ship’s deployment.
You should consider the total dollar value of
canned sodas as a separate authorized increase to
your inventory limitations whether your ship is
deployed or whether it is operating in the con-
tinental United States (CONUS). Whenever your
inventory limitation is increased for deployment,
you should send a letter to NAVRESSO, with a
copy to the type commander, containing the
following information.
1. The monetary value of the increase
2. The reason for the increase
3. The period of time in which the increase
is taken
4. The current number of personnel on board
your ship
Your total authorized inventory will be a com-
bination of the original authorized inventory
(which is $54 times the current number of per-
sonnel on board) plus the canned sodas inventory.
When your ship is deploying, you should include
in your total inventory your ship’s foreign mer-
chandise inventory and an additional $18 per
person per month times the months of the ship’s
scheduled deployment.
INVENTORY CONTROL RECORDS
An inventory control record is a management
tool designed to help you make certain that your
ship’s store meets the following objectives:
1. A stock turn of 1.33 for each accounting
period
2. A total inventory of ship’s store and
standard Navy clothing stock that does
not exceed the authorized limits
There are two inventory control records you
must use for the ship’s store: (1) Inventory Con-
trol Record for Ship’s Store Stock and (2) Inven-
tory Control Record for Standard Navy Clothing
Stock. Although you are normally required to
maintain a separate inventory control record for
standard Navy clothing, you can include standard
Navy clothing on the Inventory Control Record
for Ship’s Store Stock whenever you sell standard
Navy clothing through the same cash register
used for ship’s store stock or when your inven-
tory balance for standard Navy clothing is less
than $300 and sales for standard Navy clothing
are also less than $300 per month. In the case of
both inventory control records, you should round
off all money values to the nearest dollar.
4-5
|
