SITXINV004 Control stock Worksheets

SITXINV004 - Control stock

Worksheets

INSTRUCTIONS

• The questions are divided into sections according to the elements within the unit of competence. There are five sections in this unit.
• You are to provide answers to each of the questions in a separate document using MS Word or similar word processing tools. Your document should be professionally formatted with question retyped and answered.
• You must answer all questions satisfactorily to achieve competency in the unit. The extent of responses required will vary by question.
• Your answers should be in your own words, not copied or plagiarised from any person or source except where appropriate such as a definition, in which cases you should reference the source.
• Ask your assessor if you do not understand a question. Whist your assessor cannot tell you the answer, he/she may be able to re-word the question for you.
• Re-assessment: If you do not achieve the required standard, you will be given the opportunity to be re-assessed by our Assessor. Arrangements will be made on an individual basis. If you are deemed to be NS (Not Satisfactory), your assessor will either ask specific questions orally, and record them with you using the supplementary evidence sheet or you will be asked to resubmit your responses in full.
• Feedback: Your assessor will provide feedback to students after the completion of the assessment. The assessor will explain the appeals process when required

SECTION 1: MAINTAIN STOCK LEVELS AND RECORDS

Q1: List four general capabilities, features and functions of computerised stock control systems.

• Identify fast- and slow-selling items
• Record and report stock quantities
• Provide reorder quantities
• Automatically reorder items when below par levels

Q2: What is an impress system and when is it commonly used?

• A fixed amount is reserved and, after use or a period of time, it is replenished back to original amount.
• Most common use of this system is for petty cash.

Q3: Describe how manual or electronic bin card systems are used to record and track stock levels.

• A bin card records the comings and goings of all stock.
• There’s a separate bin card for every stock item.
• Each bin card shows the desired minimum level/‘par level’.
• When the item gets near the minimum level, reorder it to the maximum level to make sure you don’t run out.

Q4: Identify three ways you can monitor and maintain stock levels to prevent over- or under-supply.

• Place an order for stock as soon as it reaches its minimum level
• Order the right amount of the right stock at the right time
• Keep track of the stock on hand by regularly counting it

Q5: A new staff member has just joined the team. Provide six tipson what stock information they can use to monitor and order stock.

• Size of stock (weight, volume, number of items)
• The value of opening stock
• Cost and selling price of items on hand
• Actual quantity and dollar value of stock on hand and in storage
• The minimum order quantity specified by the supplier
• Quantity and dollar value of items currently on order and received in response to orders

Q6: You also need to coach the new staff member on how to maintain records and reports on stock levels. List six actions they’re required to take.

• Check computer-generated records and reports for accuracy, interpret the information and look for discrepancies.
• Manually count and order stock using an electronic scanner.
• Record discrepancies between actual stock on hand and book value following a stock count.
• Ensure you’ve actually received stock from suppliers before issuing payment.
• Ensure that any stock under your control is sold at the correct price.
• Match stock received with stock ordered by checking delivery documentation against stock order forms

Q7: List six stock records you might need to monitor and maintain if you work in a large establishment.

• Goods stored for customer orders
• Rotation of stored stock
• Stock prices
• Stock ordered
• Stock in storage off-site
• Stock damaged or lost

Q8: List the information included on a stock usage report.

• Amount or weight
• Date
• Stock type
• Name of the person who took it

Q9: Monitoring stock performance helps you identify and report fast- and slow-moving items. Look at the data below. Identify which stock is selling fast and which is selling slowly.

Total sales of beer X over a six month period were $24,000.

The value of opening stock was $33,000.

The value of closing stock was $3,000.

Total sales of beer Y over a six-month period was $24,000.

The value of opening stock was $40,000.

The value of closing stock was $26,000.

• Beer X is fast-selling.
• Beer Y is slow-selling.

Q10: What is a stock reorder cycle?

Designated daily, weekly, fortnightly or monthly cycles for reordering stock.

Q11: Describe how you would monitor reorder cycles so you know when to adjust them.

Keep an eye on stock records such as bin cards and usage reports, regularly calculate stock turnover rate, and count the stock in work and storage areas regularly.

Q12: You need to delegate some ordering responsibilities to a team member. Describe how you would do this, including any training or coaching you’d provide to demonstrate good teamwork skills.

• Make sure they’re well informed about their individual stock ordering responsibilities.
• Coach them on completing and interpreting stock control records.
• Remind them to keep stock records legible and accurate.
• Monitor their work for accuracy. In particular, check their counting of stock on hand and quantities of stock ordered.
• Monitor staff time management. If necessary, re-organise duties to help them meet timeframes.
• Provide training in using ordering equipment. Ensure that they’re familiar with the reorder cycles and adhere to them.

SECTION 2: PROCESS STOCK ORDERS

Q1: What are the names of two documents that contain information on negotiated cost of supply and other contractual arrangements between your organisation and preferred suppliers?

• Standard purchase specifications
• Purchase and supply agreement

Q2: Describe the difference between an order form and an internal requisition form.

• Order forms are for placing orders with suppliers
• Internal requisition forms are for drawing goods from one department of an organisation to another

Q3: Describe three features and functions of computerised ordering systems.

• They monitor sales of all individual stock items and can alert you to low stock levels as they occur
• They can be customised to suit a range of industry needs.
• They generate a range of reports at the touch of a button with up-to-the-minute accuracy.

• Processing returns, credits, refunds or exchanges
• Storage areas
• Delivery and despatch areas
• POS transactions

SECTION 3: MINIMISE STOCK LOSSES

• Wastage sheet.
• Kitchen/store spoilage report.
• Use manual shrinkage recording systems such as shrinkage sheets to record unsaleable stock.
• Use electronic scanners, barcodes and APNs (Australian product numbers) to update computer records.

State the reasons for the stock losses in questions 6 to 11.

Q6: Frozen seafood defrosts and spoils. Inappropriate storage temperature.

Q7: Yoghurt is held past its use-by date.

Lack of rotation.

Q8: Mice have chewed through bags of sunflower seeds. Irregular cleaning or inspection of stock and storage areas.

Q9: Meat drippings contaminate a cheesecake. Improper segregation of stock or adherence to storage procedures.

Q10: Gourmet cheese is stolen from the delivery dock.

Inadequate use of stock security systems, equipment and procedures.

Q11: What is the main purpose behind rotating, maintaining and replenishing stock?

Stock rotation, maintenance and replenishment maximises use and minimises wastage.

Look at the losses in questions 12 to 15. Describe solutions you would recommend or procedures you would implement to protect stock and prevent these losses from happening again.

Q12: Contents of the freezer have defrosted and melted.

Store all stock at the appropriate temperature. Create a roster for temperature measurements of freezers. Accurately complete temperature control charts.

Q13: Milk has passed its use-by date and gone sour.

Follow stock rotation procedures, particularly for perishable items, so stock doesn’t spoil or deteriorate. Coach staff on FIFO.

Q14: Breakfast cereals are infested with moths and larvae.

Regularly inspect the stock itself and all storage areas for evidence of pest and vermin infestation. Treat immediately.

Q15: Food has been contaminated from cleaning chemicals stored above it.

Appropriately segregate stock in storage to eliminate cross-contamination

Q16: How often and when should you check the quality of stock and look for slow-moving items? Regularly – while putting stock away or carrying out housekeeping duties.

Q17: Staff members are stealing stock by placing it in their personal bags before they leave the premises. Describe two security procedures you could implement to reduce staff theft of this kind.

• Random locker searches
• Not allowing personal belongings in service or storage areas

SECTION 4: FOLLOW UP ORDERS

Q1: State four ways you can monitor the delivery of stock

• Monitor delivery arrangements.
• Use a manual diary system to remind you to check that deliveries have arrived when expected. Use a computer reporting system that shows delivery due dates.
• . Monitor lead times.
• Monitor order cycles.

to supply.

• Call a meeting and involve your staff.
• Clearly state the exact problem.
• Brainstorm solutions together.
• Choose the best solution.
• Implement this solution yourself, delegate its implementation, or refer it to the appropriate senior level person.

Q5: You must know the product life of the stock you’re responsible for to store it appropriately. Number these items from 1 to 4 (shortest shelf life to longest).

• Whole mango - 2
• Seafood - 1
• Tinned tomatoes - 4
• Cooking oil - 3

Q6: State at least one appropriate storage area for these specific goods.

• Fresh, whole eggs - Refrigerated storage or dry store
• Canned products - Dry store
• Cleaning chemicals - Away from food in a safe, secure storage area
• Linen - Linen room

SECTION 5: ORGANISE AND ADMINISTER STOCKTAKES

Q1: What is a full stocktake?

You count all stock on a nominated day.

Q2: What is a cyclical stocktake?

You break the stocktake up into stages to progressively count all stock at least once during the course of the financial year.

Q3: What is a spot-check?

You check randomly from time to time to maintain par levels, clear up a discrepancy or enhance security.

Q4: How do you decide at what intervals to organise your stocktake?

The appropriate interval for your stocktakes depends on the type of business, the type of stock you carry and financial reporting requirements.\

Q5: A new team member is participating in the stocktake. List five questions you should be prepared to answer about your organisation’s stocktake procedures.

• Who’s responsible for each task?
• How long do we have to do our tasks?
• What order do we do the tasks in?
• How do we prepare the stock for counting?
• What resources do we need?
• Which areas are included in the stocktake?

Q6: Identify five factors that you need to consider when rostering staff for stocktake duties.

• Timeframe to complete the stocktake
• Staff numbers you need
• Timeframe to complete the stocktake
• When you’re conducting the stocktake (during or after trading hoursStaff numbers you need
• The best mix of staff (in terms of skills, training and prior experience

Q7: What two systems help you produce accurate reports within a given timeframe?

• Manual systems
• Computerised systems

Q8: State the procedures involved in a computerised stocktake.

• Staff work individually to count stock using electronic portable data entry (PDE) units.
• They download count data into the establishment’s computer system.
• The computer program compares the count with the book value of individual items.
• The computer’s ‘exception report’ facility details variances between count data and book value.
• The computer generates discrepancy reports.
• You investigate discrepancies by re-counting any stock included in the exception report to verify accuracy.
• If the original count is accurate, you need to identify possible reasons for the variance in your report.

In questions 9 to 13, explain how you would use the documentation to help you create accurate stocktake reports.

Q9: Stock or count sheets

• Use these to document the items you count. They contain more information than other methods of recording and are usually partly prepared before counting begins.
• If your establishment uses a computerised purchasing system, you can print stock or count sheets directly from the system.

Q10: Count Tickets

• Place a count ticket in the position where each item you need to count is stored.
• Staff progressively count the items and fill in the count tickets as they go.

Q11: Stock-taken stickers

• You can use this system for both manual and electronic stocktakes.
• Place a coloured sticker or label on each item’s shelf, box or storage container once you’ve counted it.
• his ensures you’ve counted all the stock (and haven’t counted any stock twice

Q12: Shrinkage sheets

• Use shrinkage sheets during the stocktake to record stock that’s damaged, soiled or past its shelf life.
• They provide a record of a loss or partial loss and allow you to adjust stock records accordingly.

Q13: Physical inventory form

• Complete this at the end of the manual stocktake.
• Document the stock type, size, whether the item has been opened and is partially used, the quantity and the location.
• Include information on the cost of each unit of stock as well as the total value of each item