CHAPTER 6
STOCK CONTROL AND INVENTORY MANAGEMENT
The primary function of any supply organization is
contact with certain supply terms used in inventory
management. You must familiarize yourself with these
to ensure the availability of material to support the
terms.
needs of its customers. Supply must manage all
material in stock continuously and judiciously to
accomplish this function. This chapter provides
SUPPLY AND STOCK MANAGEMENT
information about stock control afloat. However, some
TERMINOLOGY
of the procedures described may also apply to stock
control ashore.
Learning Objective: Recall the following
terms frequently used in connection with the
The implementation of computer systems to gather
supply system.
a n d a n a l y z e s u p p l y d a t a h a s m a d e i nv e n t o r y
management easier to accomplish. There are several
The first step in learning stock control procedures
kinds of computer systems used throughout the Navy.
is to become familiar with the terminology used
Aboard ship, the SK working in stock control will most
throughout the various levels of supply and stock
likely use computer systems. These computers use the
management. The following text describes some of
Shipboard Uniform Automated Data Processing
these terms:
System-Real Time (SUADPS-RT) and Naval Aviation
Av e rage E n d u ra n c e L ev e l -- The quantity of
Logistics Command Management Information System
material normally required to be on hand to sustain
(NALCOMIS) procedures. Personnel assigned to
operations for a stated period without augmentation. It
stock control afloat should attend the SUADPS-RT and
is the median between the safety level and stockage
NA L C O M I S t r a i n i n g . T h i s t r a i n i n g w i l l h e l p
objective; that is, safety level plus one-half of the
personnel become familiar with the procedures for
operating level.
processing different transactions and reports.
Carried Items--This term refers to items in stock
Stock control uses different methods to perform
for which the supply department is required to
inventory control functions. In mechanized activities,
maintain on board.
stock control uses several kinds of reports in managing
stock items. The computer produces the mechanized
Consumption Document--This form is used to
reports used by stock control or supply personnel. The
affect records, and/or report issues of material.
person requesting the report can select any of the
Consumption occurs upon issue of material regardless
optional criteria provided by the computer system to
of when it was used.
produce the specific report. The person requesting the
D e m a n d / Q u a n t i t y -- The quantity of an item
report fills out and submits the request to the
requested and issued regardless of the number of
Functional Area Supervisor (FAS). The FAS will
requests involved.
include the request for the report in the planning
calendar. Supply personnel can use the mechanized
D e m a n d - B a s e d I t e m ( D B I ) -- The same
reports to analyze various situations in stock posture
definition as peacetime operating stock (POS) items.
and to check completed transactions.
These items experience at least two demands within a
6-month period and continues to have at least one
As an SK, you must be able to perform stock
demand every 6 months thereafter.
control functions. The SK working in stock control is
responsible for maintaining stock records, conducting
D e p t h -- The quantity of a particular item stocked.
inventory, and maintaining files. Personnel working in
For example, if the allowance quantity of an NSN is 10,
stock control must be familiar with the procedures
t h e i t e m d e p t h f o r t h a t N S N i s 1 0 . I nve n t o r y
used by other divisions in supply because all supply
management uses this term with stock levels; that is,
personnel performing receipts, stowage, or issues
when referring to the depth of all NSNs stocked by an
generate transactions that affect records in stock
activity within the past 6 months. Selected Item
control. While in stock control, you will come in
Management (SIM) items also refer to items that have
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