requisitioning objective. POS item is synonymous
a predictable demand of two or more based on
with the term d e m a n d - b a s e d i t e m (DBI).
deployed or seasonal usage. SIM is similar to the
criteria for POS and DBI used in automated ships.
R a n ge -- The number of different items stocked.
To increase the stock range is to add new line items to
Direct Turnover (DTO)--This term refers to
stock. For example, if an activity stocks 7,000 different
material ordered from sources external to the ship or
line items (stock numbers), the item range is 7,000.
station. Immediately upon receipt, supply personnel
turn over the material to the using department or
R e o rd e r Po i n t -- The stock position that signals
squadron. Such material is required for immediate or
the need to start replenishment action. It includes
planned use.
stocks represented by the safety level plus the order
and shipping time. It is the same as low limit.
Frequency of Demand--The number of requests
(hits) that an item experiences within a given time
R e q u i s i t i o n i n g O b j e c t i v e -- The maximum
quantity of material to be maintained on hand and on
frame. For example, if there are five requisitions
order to sustain current operations. It includes the sum
processed for an item within the given time frame, the
of stocks represented by operating level, safety level,
frequency of demand is five. The total quantity
and order and shipping time. It is the same as high
demanded could be any number, depending on the
limit.
quantity per request.
S a f e t y L e v e l -- The quantity of material, in
H i g h L i m i t -- The maximum quantity of material
addition to the operating level, required to be on hand
to be on hand and on order to sustain current
to permit continual operations. This is the quantity of
operations. It includes the sum of stocks represented
material used as a buffer to reduce the number of not in
by the operating level, the safety level, and the order
stock (NIS) situations.
and shipping time. It is equivalent to the requisitioning
SIM (Selected Item Management) Item--SIM
objective (RO).
is an inventory control principle for nonautomated
L o w L i m i t -- The stock position that signals the
ships. SIM items are those items that have experienced
need to start a replenishment action. It includes the
a frequency of demand of two or more.
stocks represented by the safety level plus the order
S t o ck age O b j e c t i v e -- The maximum quantity of
and shipping time. It is equivalent to the reorder point.
material to be maintained on hand to sustain current
N o t C a r r i e d -- Refers to items that the supply
operations. It includes the sum of stocks represented
department does not stock. The supply department
by the operating level and the safety level.
does not maintain stock records for these items.
N o t i n S t o ck -- Refers to items stocked by a
STOCK CONTROL RESPONSIBILITIES
supply department but not on board when the demand
AND FUNCTIONS
occurs.
Learning Objective: Classify the different
O p e r a t i n g L e v e l -- The quantity of material
responsibilities and functions to control the
(exclusive of safety level) required to sustain
availability of all items of stock under stock
operations during the interval between successive
control cognizance.
requisitions. Normally, it is the difference in the
quantity between the requisitioning objective (high
Aboard ship, stock control is the nerve center of
limit) and the reorder point (low limit).
the supply department under the Shipboard Uniform
Automated Data Processing System (SUADPS). The
O rd e r a n d S h i p p i n g Ti m e -- The anticipated (or
Naval Aviation Logistics Command Management
advertised) time between order and receipt.
Information System (NALCOMIS) used by aviation
Pe a c e t i m e O p e r a t i n g S t o c k ( P O S )
units also interfaces with SUADPS. The inventory
Item--Used by automated ships to identify items that
control procedures used afloat are compatible with the
have a relatively high issue rate. POS items experience
3-M reporting and OPTAR accounting requirements in
a demand frequency of two or more in a period of 6
the Navy. These are the 3-M reports as defined in
months and continue to have at least one demand every
OPNAVINST 4790.4 (ship's) and OPNAVINST
6 months afterwards. POS items require semiannual
4 7 9 0 . 2 ( s e r i e s ) f o r av i a t i o n . T h e F i n a n c i a l
r ev i ew o f s t o c k r e c o r d s t o c o m p u t e t h e n ew
M a n age m e n t o f R e s o u rc e s ( O p e ra t i n g Fo rc e s ) ,
6-2
