Assessment 4: Assignment

SITXINV401 Control stock

For this assignment you are required to demonstrate your knowledge of receiving, storing and
controlling stock

This assignment consists of three (3) parts. You must complete them both. Assignment must be
submitted with the assignment cover sheet to the trainer in class.

Assessment Criteria
Your assessor will be looking for evidence of your knowledge of:

• basic knowledge of relevant stock, including product life and storage requirements
different types of storage and their suitability for different kinds of stock principles of
stock control, including:
- rotation
- correct storage procedures for specific goods
- segregation of non-food items from food items in any storage area that have potential to
cross-contaminate
- checking for slow moving items
• types of stock control documentation and systems that may be applied in the tourism and
hospitality industries
• stock security systems and procedures
• OHS procedures and safe work practices that relate to the receipt, transportation and storage
of stock
• safe and correct use of equipment, such as forklifts.
• stock ordering procedures
• stock level maintenance techniques appropriate to industry sector
• stocktake procedures appropriate to industry sector
• stock recording systems
• stock security systems and procedures
• types of stock control documentation and systems
• reasons for stock loss and damage and methods used to control these.
Assessment Results
The assessment result will be given as either:
• S – Satisfactory
• NS - Not Satisfactory
Part A

Read the scenario below and answer the questions based on this situation.

Tim is a new employee of a restaurant and today is his first day. Tim has been told that he will
be in charge of all the stock rotation and receiving goods in the morning. Tim starts work at 6am
ready to receive the first load of deliveries.
When the first truck arrives with the produce, Tim signs his name off on receiving the goods and
packs them away where ever he can find space. The second truck arrives a few moments later
and Tim does as he did before only the truck driver says there is not enough tomatoes for
today’s delivery and they will make up for it next week. Tim says ‘no worries’ and stores the
produce without checking the paperwork again.
Around lunch time the seafood delivery arrives, Tim is packing away the dry goods so decides to
sign for the delivery and continue with his dry goods order leaving the seafood on the loading
dock.

Question 1:
There are three major problems with the way Tim handled his responsibilities. What are
they?

Answer: The three major problems with the way Tim handled the responsibilities are:

a. Did not correctly received the orders. One has to assess that the goods ordered are
received at the right time, at the right place, in the right quantity and are of the right
standard
b. When the stock is received, it needs to be ensured that it has to be stored at the right
environment post delivery. Tim ignores this procedure.
c. It is necessary that after signing off the papers to endorse the stock receipt, it is necessary
that the stock is actually off-loaded from the docks.

Question 2

How should have Tim handled the problem areas you have identified.

Answer: Tim should have handled the stocks receipts by following the procedures. There are clear
processes laid down for stock handling. It is necessary that these processes must be adhered like
when the stock is received it has to be verified as to what has been actually received and against
which order the stock is received. This ensures that the deliveries are correct and available with
desired quantity and quality.
Question 3:
What are the standard operating procedures for receiving and storing deliveries that all
staff must follow in this establishment?

Answer: The standard Operatinve procesurd for for receiving and storing deliveries that all staff
must follow in this establishment is to first verify the deliverables. It is essential that the personnel
receiving the delivery must check that the items received conform to the quality, number, and the
description of the goods as ordered and expected. It is necessary that the goods be verified and as
per the nature of the goods, must be stored as per the standard procedure. For instance, if the
goods are perishable then these need to be stored at the designated place asap so that the quality
of the goods can be maintained.

Part C

There are many stock control systems that can be used in hospitality establishments. From
the list below select two and describe important points about each one and provide your
opinion on which would be most effective in maintaining stock control.

Select two from this list:

- Bin card system - Perpetual inventory control
- Stock ledger control system - Periodic stocktake system
- Computerised inventory control
Question 1

System 1: Stock ledger control system

One of the many stock control systems that can be used in hospitality establishment is the Stock
ledger control system. It involves the paperwork as a ledger has to be maintained. Importance of
paper work can be judged from the need of record keeping for stores and kitchens. For them it is
essential that the incoming goods be in accordance with what it was actually ordered in terms of
quantity and quality. It is also necessary that the record of receipt of such goods be made in order
to ensure their safe custody. One of the ways that the safe record can be made is through the stock
ledger control system. Here the Stock Ledger is maintinated which is maintianed in form of loose-
leaf file giving one ledger sheet for each item maintained in the stock. Whenever items are
received the relevant entry is made over the respective stores ledger sheet. If a corresponding bin
card entry is also mantinaed then the entries must match with the bin cards so that the balance on
the bin card must match with the balance as seen from the store ledger sheets. In this manner the
entries are verified, validated and legitimate. The Stock Ledger Card also known as the Stock
Control Card is centrally maintained at supervisor or managers’ office. It may also be maintained
electronically at computer bank and the object is to record the detail of stock movement so that the
actions are recorded after the movemen has taken place. Thus, it provides a great way as a control
check for production yield against the goods requisitioned. Separate card is maintained against
each type of goods.

System 2: - Computerised inventory control

In order to manage movement of items both from stores to the departments or sections that request
them an inventory control system is required. This helps to keep track of the available inventory as
well as the record of each movement and control. This is also necessary so that the stores have a
check on the potential losses through deterioration or otherwise, missing of the items through some
possible carelessness and pilfering. An example of inventory control system which is very popular
in hospitality industry is the Computerised inventory control system. Here the integrated computer
systems, also sometimes termed as property management system (PMS) links point-of-sale systems
(like the cash register) to the stock system so that an improvement in efficiency of stock control
can be provided. As soon as sale transaction is completed, the inventory is updated instantaneously
as the sales are connected through computerized system with inventory and stock control system.
This is possible with the online inventory management system. The computerized system can also
generate various reports suggesting the present level of stock maintained by the hospitality unit. If
a particular items falls below the necessary level, the system can be linked to the re-order system
so that that item can be reordered. Any movement of goods within the internal or external entity is
recorded on an online basis so that the reports provide the actual situation. Any possible
redundancy or duplicity of data entry is avoided as usually it is a single touch entry systems and so
there are no discrepancies in the data. This makes the system very efficient and avoids all the
possibilities of item data mismatch due to ignorance and the malpractices like pilferage are
avoided.

Question 2:
Explain what a stocktake is and how regular stocktakes can be used to identify stock loss.
Explain the stocktake reporting procedures that needs to be maintained?
Answer: Stocktaking can be understood as a system which allows ‘counting’ of the stock.
Stocktaking or counting of the stock needs to take place at regular intervals (like every week or
every month). During this periodic stocktake a count is taken which can be restricted to some
departments or where there is a frequent change but during the end of the financial year a
comprehensive count of all the stock in the company takes place. In the stocktake process many
employees are usually involved and their contribution is required in some form or another. In the
stocktaking process the idea is to keep the goods maintained at required level, so that the risks of
running out of stock can be avoided. Thus it is recommended that for some departments or for
some regularly used stocks or goods, regular weekly or monthly counts are undertaken and a
comprehensive stocktaking is done at the year end and the records reconciled or updated
accordingly. Moreover stocktaking helps to ascertain a percent of profits as registered by the
individual departments under establishment. For instance, the performance of the sales can be
judged with the stocktaking as it tells as to how much products or items have been sold.

Question 3:
If a stocktake indicates that a large amount of stock is missing what are the possible
reasons for this and how can the cause be identified?
Answer: It was highlighted as to how the stocks or items in the purview can be checked with the
help of regular counts. At the end of the year, a comprehensive stocktaking reconciles the complete
figure for all the stocks. Now, assuming that a stocktake indicates that a large amount of stock is
missing then it can be actually reconciled through the process of stocktaking. There are various
possible reasons for this and this can be easily identified. One reason is that a department on a
requisition sent some stock for consumption to the other department, but then the transaction was
not recorded. The previous counts report that the existing stock must be much higher than the next
stocktaking report. If the count of all the departments where the stock was moved is taken, the
reports can be reconciled and one can find the apparent loss. If the count still shows mismatch then
this could be valid reason to initiate investigation for a possible pilferage of items. In this manner
stocktaking acts as a very good validation and verification system for the stocks and it also presents
the opportunity to avoid the risks of stealing of items and pilferage.

Assessment 4- Assignment - Marking Guide

Unit of Competence SITXINV401 Control stock

Student’s Name

Student’s ID
 Assessor’s Name

Date of assessment

Assignment Assessment 1

Did the student demonstrate knowledge of: Yes No Comments

basic knowledge of relevant stock, including

product lidifferent types of storage and their suitability

for fe and storage requirements
different kinds of stockprinciples of stock control,
including:
rotation
types of stock control documentation and

systems
that may be applied in the tourism and hospitality stock
security systems and procedures
OHS procedures and safe work practices that

relate to the receipt, transportation and storage of safe

and correct use of equipment, such as
forklifts.
stock ordering procedures

stock level maintenance techniques appropriate

to industry sector
stocktake procedures appropriate to

industry
sector
stock recording systems

stock security systems and procedures

types of stock control documentation and systems

reasons for stock loss and damage and methods

 used to control these.Feedback to student:

The student’s overall performance is: Satisfactory Not Satisfactory

Is re-assessment necessary? Yes No
Assessor signature Date
Student signature Date
Practical Demonstration: Assessment 6 (Task 1, 2, 3 and 4)