figure 7-7. NAVRESSO then submits the analysis to  your  type  commander.  The  type  commander uses  the  analysis  to  evaluate  your  ship’s  store operation. In this way, the type commander can spot any ship’s 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  ship’s store operation. NAVRESSO derives the analysis of  your  ship’s  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 7-7.) Ship’s 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  sales—VM),  and  13  (cost  of  operating  VM) divided  by  the  ship’s  store  opening  inventory  (cap- tion  20). 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  sales—VM), 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 ship’s 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 analysis. Among   the   comments,   the   most   common complaint is the failure of a ship’s store to meet the 1.33 stock turn ratio. This error usually results whenever a ship’s store holds too much inventory in  relation  to  sales.  Upon  examination  of  ship’s store returns, NAVRESSO has found that when ships  repeatedly  fail  to  meet  the  required  stock turn,   these   ships   are   usually   overstocked   on certain items. The  operational  analysis  is  designed  to  help you to improve your ship’s store operation. If you are having problems or if you simply desire more information to keep your ship’s store up-to-date, remember  that  NAVRESSO  is  only  a  telephone call away. NAVRESSO is always ready and will- ing  to  give  you  assistance. OPERATIONAL  OBJECTIVES Whenever   you   conduct   your   own   internal analysis of your ship’s 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  ship’s  store.  Review  these guidelines  periodically  as  you  review  your  own records and returns. Throughout your ship’s store operation,  use  these  guides  to  achieve  your  desired operating  results. 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 accounting   period. 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. 7-30