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ASIAN DEVELOPMENT FOUNDATION COLLEGE

Bliss, Sagkahan, Tacloban City

FOOD & BEVERAGE SERVICES NC III


TESDA Competency Based Learning Material

COMMON COMPETENCY NO. 2


Control and Order Stock

TOURISM SECTOR
(HOTEL AND RESTAURANT)

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

SUMMARY OF COMPETENCY-BASED LEARNING MATERIALS

No. Unit of Competency Module Title Code


1. Roster staff Rostering staff
TRS311206
2. Control and order stock Controlling and TRS311207
ordering stock
3. Train small groups Training small groups TRS311208
4. Establish and conduct Establishing and TRS311209
business relationships conducting business
relationships

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

HOW TO USE THIS MODULE

Welcome to the Module “Controlling and Ordering Stock”. This module


contains training materials and activities for you to complete.

The unit of competency “Control and Order Stock” contains knowledge, skills
and attitudes required for a FOOD & BEVERAGE SERVICES NC III Qualification.

You are required to go through a series of learning activities in order to complete


each of the learning outcomes of the module. In each learning outcome there are
Information Sheets and Activity Sheets. Follow these activities on your own and
answer the Self-Check at the end of each learning activity.

If you have questions, don’t hesitate to ask your facilitator for assistance.

RECOGNITION OF PRIOR LEARNING (RPL)

You may already have some of the knowledge and skills covered in this module
because you have:

• been working for some time


• already have completed training in this area.

If you can demonstrate to your trainer that you are competent in a particular
skill or skills, talk to him/her about having them formally recognized so you don’t have
to do the same training again. If you have a qualification or Certificate of Competency
from previous trainings show it to your trainer. If the skills you acquired are still
current and relevant to this module, they may become part of the evidence you can
present for RPL. If you are not sure about the currency of your skills, discuss it with
your trainer.

After completing this module ask your trainer to assess your competency. Result
of your assessment will be recorded in your competency profile. All the learning
activities are designed for you to complete at your own pace.

Inside this module you will find the activities for you to complete followed by
relevant information sheets for each learning outcome. Each learning outcome may
have more than one learning activity.

This module was prepared to help you achieve the required in “Control and
order stock”. This will be the source of information for you to acquire knowledge and
skills in this particular trade, with minimum supervision or help from your trainer.
With the aid of the materials, you will acquire the competency independently and at
your own pace.

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

• Talk to your trainer and agree on how you will be both organize the training of
this unit. It is divided into sections which covers all the skill as and knowledge
you need to successfully complete this module.
• Most probably your trainer will also be your supervisor or manager. Your trainer
is there to support you and show you the correct way to do this things. Ask for
help.
• Your trainer will tell you about the important things you need to Consider when
you are completing activities and it is important that you listen and take notes.
• You will be given opportunities to ask questions and practice on the job. Make
sure you practice your new skills during regular work shifts. This way you will
improve both your speed and memory and also your confidence.
• Talk to more experienced workmates and ask for their guidance.
• Use self-check questions at the end of each section to test your own progress.
• When you are ready, ask your trainer to watch you perform activities outlined
learning materials.
• As you work through the activities, ask for written feedback on your progress.
Your trainer keeps feedback/pre-assessment reports for this reason. When you
have successfully completed each element, ask your trainer to mark on the
reports that you are ready for assessment.
• When you have completed this module and feel confident that you have had
sufficient practice, your trainer will arrange an appointment with the registered
assessor to assess you. The results of your assessment will be recorded in your
Competency Achievement Record Sheet.

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

MODULE CONTENT

UNIT OF COMPETENCY : CONTROL AND ORDER STOCK

MODULE TITLE : CONTROLLING AND ORDERING STOCK

MODULE DESCRIPTOR : This module covers the knowledge, skills, behavior and
motivations required to control and order stock in a range of hospitality establishments. This
role is generally carried out by supervisors and team leaders.

NOMINAL DURATION : 6 hours

QUALIFICATION LEVEL : NC III

SUMMARY OF LEARNING OUTCOMES:

Upon completion of this module, the students/trainees must be able to:

LO1. Maintain stock levels and records.

LO2. Process stock orders.

LO3. Manage stock losses.

LO4. Follow-up orders.

LO5. Organize and administer stocks.

LO1. MAINTAIN STOCK LEVELS AND RECORDS


Assessment Content Condition Methodologies Assessment
Criteria Methods
1.Stock levels *Stock Learning Distance ONLINE:
are monitored recording Management Learning:
and maintained systems System- -Computer
according to Google • Printed CBLM Based
company *Securing Classroom •Tutorial videos assessment
requirements. stocks in disc or flash
CBLM in drive in -Interview with
2.Stock security *Par stocks Participating in Oral
is monitored and Workplace • Slide Questioning via
systems are *Monitoring Communication Presentation Video
adjusted as slow moving Materials or Conference
required. items Tutorial Videos eCBLM
in disc or flash Written Exam in
3.Stock reorder drive Google Forms
cycles are
monitored and

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

adjusted as Slide Submission of


required. Presentation ONLINE: Work sample
materials or -Computer based via online
4.Colleagues are eCBLM Training
informed of their (e learning) via
individual Google
responsibilities in Classroom as
regard to the LMS
reordering of
stock. -Online Lecture
via Google Meet
5.Records of
stock storage -Online Chat
and movement Learner support
are maintained in via Facebook
accordance with Messenger
company
procedures. -Online
6. Stock Discussion
perform Forum via
ance is Google
monitore Classroom
d and
fast/slow -Online Video
-selling Tutorials using
items YouTube in
are Google
identifie Classroom
d and
reported
in
accorda
nce with
compan
y
procedur
es

LO2. PROCESS STOCK ORDERS


Assessment Content Condition Methodologies Assessment
Criteria Methods
1.Orders for *Ordering/re- Learning Distance ONLINE:
stock are ordering Management Learning:
processed stocks System- -Computer
accurately and in Google • Printed CBLM Based
accordance with *Handling Classroom •Tutorial videos assessment
company incoming in disc or flash
procedures stocks drive in

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

CBLM in -Interview with


2.Stock levels *Maintaining Participating in • Slide Oral
are maintained stock records Workplace Presentation Questioning via
and recorded Communication Materials or Video
ensuring eCBLM Conference
information is Tutorial Videos
complete, correct in disc or flash ONLINE: Written Exam in
and current. drive -Computer based Google Forms
Training
3.Incoming stock (e learning) via Submission of
is checked Slide Google Work sample
against purchase Presentation Classroom as via online
and supply materials or LMS
agreements and eCBLM
all necessary -Online Lecture
details are via Google Meet
recorded.
-Online Chat
Learner support
via Facebook
Messenger

-Online
Discussion
Forum via
Google
Classroom

-Online Video
Tutorials using
YouTube in
Google
Classroom

LO3. MANAGE STOCK LOSSES


Assessment Content Condition Methodologies Assessment
Criteria Methods
1.Stock losses *Recording Learning Distance ONLINE:
are identified and stock losses Management Learning:
recorded System- -Computer
according to *Reporting Google • Printed CBLM Based
company stock losses Classroom •Tutorial videos assessment
procedures. in disc or flash
*Preventing CBLM in drive in -Interview with
2.Losses are stock Participating in Oral
reported in losses/stock Workplace • Slide Questioning via
accordance with control Communication Presentation Video
company procedures Materials or Conference
procedures. eCBLM

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

3.Avoidable Tutorial Videos Written Exam in


losses are in disc or flash ONLINE: Google Forms
identified and drive -Computer based
reasons behind Training Submission of
these losses are (e learning) via Work sample
established. Slide Google via online
Presentation Classroom as
4.Solutions to materials or LMS
loss situations eCBLM
are -Online Lecture
recommended via Google Meet
and related
procedures are -Online Chat
implemented to Learner support
prevent future via Facebook
avoidable losses Messenger

-Online
Discussion
Forum via
Google
Classroom

-Online Video
Tutorials using
YouTube in
Google
Classroom

LO4. FOLLOW UP ORDERS


Assessment Content Condition Methodologies Assessment
Criteria Methods
1.The delivery *Monitoring Learning Distance ONLINE:
process is deliveries Management Learning:
monitored to System- -Computer
ensure agreed *Controlling Google • Printed CBLM Based
deadlines are shortages or Classroom •Tutorial videos assessment
met. out of stock in disc or flash
supplies CBLM in drive in -Interview with
2.Continuity of Participating in Oral
supply is *Allocating Workplace • Slide Questioning via
ensured by deliveries and Communication Presentation Video
liaising with supplies Materials or Conference
colleagues and Tutorial Videos eCBLM
suppliers. in disc or flash Written Exam in
drive ONLINE: Google Forms
3.Routine supply -Computer based
problems are Training Submission of
followed up or Slide (e learning) via Work sample
referred to the Presentation Google via online

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

appropriate materials or Classroom as


person in eCBLM LMS
accordance with
company policy. -Online Lecture
via Google Meet
4.Stock is
distributed to -Online Chat
agreed locations. Learner support
via Facebook
Messenger

-Online
Discussion
Forum via
Google
Classroom

-Online Video
Tutorials using
YouTube in
Google
Classroom
LO5. ORGANIZE AND ADMINISTER STOCKS

Assessment Criteria Content Condition Methodologies Assessment


Methods

1.Stocks are *Organizing Learning Distance Learning: ONLINE:


organized at stocks Management
appropriate System-
• Printed CBLM
intervals according -Computer Based
Google Classroom •Tutorial videos in
to company policy *Stock assessment
disc or flash drive in
and procedures. taking/inventory
systems
CBLM in • Slide Presentation
Materials or eCBLM -Interview with
Participating in
2.Stocktaking Oral Questioning
Workplace
responsibilities are *Inventory via Video
Communication
allocated to staff. reports Conference

Tutorial Videos in
3.Accurate stock Written Exam in
disc or flash drive
reports are Google Forms
produced within
designated
timelines. Submission of
Slide Presentation Work sample via
materials or online
eCBLM

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

ONLINE:

-Computer based
Training

(e learning) via
Google Classroom as
LMS

-Online Lecture via


Google Meet

-Online Chat Learner


support via
Facebook
Messenger

-Online Discussion
Forum via Google
Classroom

-Online Video
Tutorials using
YouTube in Google
Classroom

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

Learning Experiences

Learning outcome 1. MAINTAIN STOCK LEVELS AND RECORDS

Learning Activities Special Instruction


1. Read Information Sheet 1.1.1
On MONITOR AND MAINTAIN
STOCK LEVELS
Read Information Sheet 1.1.1-1.1.1
2. Answer Self-check 1.1.1 and answer every Self check in every
Compare anwers with answer Information Sheets. Check your
key 1.1.1 answers by looking at the Answer key
at the following page.
3. Perform Task Sheet 2.1.1 Task Sheet will help you practice
On CONTROL AND ORDER your skills.
STOCK You may refer to Training Activity
Matrix for Learners as a sample.
4. Evaluate your own output The Performance Criteria Checklist
using performance Criteria will guide you evaluate you work as
Checklist 3.1.1 you evaluate your work as you are
practicing your skill.

If you have questions about the use


of the matrix, please ask your trainer

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

INFORMATION SHEET 1.1.1


MONITOR AND MAINTAIN STOCK LEVELS
Re-order point - the inventory/stock position when a new order should be placed.
Each company has to determine the level of stock it wants to carry. Once determined,
systems must be put in place to monitor and maintain them.
Stock movement may be tracked manually and an order placed when the reorder
point is reached, as indicated by entries on the stock card. Manual tracking requires
that the stock clerk be alert and make daily checks on his stock. They are many
software applications available to monitor stock electronically. Once various critical
points are determined and entered, these systems automatically alert you to changes
that need your attention. Your computer will tell you (a) which item needs to be re-
ordered now (b) what product’s shelf life has expired (c) the products that are too long
in the inventory (d) prints, purchase requisition and orders will give you reminder
regarding time frame
STOCK SECURITY SYSTEMS

Bar code - UPC/ Universal Product Code identifies storage information on a


product/item.
▪ Unique number or bar code assigned to stock item/product for
identification.
▪ Records are kept of receipt and/ or deliveries of any item into or
out of stock
▪ Product is removed from stock only on receipt of
properly completed goods requisition form
▪ Unauthorized persons are not allowed into stock room
▪ Stock is stored or moved in accordance with FIFO (first-in first-out)
Monitor and adjust stock re-order cycles

Although stock levels are pre-determined, and the order quantity and
cycles determined by applying the EOQ inventory model and might
make it necessary to adjust to order quantity and re-order cycles based
on:

• Movement of stock item owing to faster or slower usage


• Spoilage
• Breakage
• Menu changes
• Seasons

Stable or improved inventory costs are a result of continuous monitoring


and appropriate and timely adjustments.

Colleagues- responsibilities and stock records For any system to function efficiently
all parties involved must be aware of and respect the terms and conditions of service.

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

Whenever stock is purchased, received, requested from storage, delivered, dumped or


disposed of, no matter the manner, the appropriate forms/cards or data entry must
be made or completed. Maintain stock storage and movement records
Record keeping is an important aspect of stock control. It provides for the accounting
department, the inventory cost and pricing information they usually require. It also
eliminates the need to count stock each time stock is added or removed. Entering
stock movement as soon as it occurs ensures a perpetual record is available. Periodic
stock counts confirm stock record balances and identify overages or shortages
Monitor Stock Performance

Stock performance should be monitored consistently. As management tools,


records should be kept current. Fast/slow selling stock should be reported
to the relevant authority/purchasing officer, adjustments to the order
frequency or order quantity. The production department should also be
informed as the stock level in production changes.

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

SELF CHECK 1.1.1

1. How do you monitor and maintain stock levels?

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

ANSWER KEY 1.1.1

1. MONITOR AND MAINTAIN STOCK LEVELS

Re-order point - the inventory/stock position when a new order should be placed.
Each company has to determine the level of stock it wants to carry. Once determined,
systems must be put in place to monitor and maintain them.
Stock movement may be tracked manually and an order placed when the reorder
point is reached, as indicated by entries on the stock card. Manual tracking requires
that the stock clerk be alert and make daily checks on his stock. They are many
software applications available to monitor stock electronically. Once various critical
points are determined and entered, these systems automatically alert you to changes
that need your attention. Your computer will tell you (a) which item needs to be re-
ordered now (b) what product’s shelf life has expired (c) the products that are too long
in the inventory (d) prints, purchase requisition and orders will give you reminder
regarding time frame

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

Task Sheet No. 2.1.1


Title: Control and Order Stock

Performance Objective:

Given the necessary materials, the trainee must be able to perform


tasks within 1hour minutes.

Materials: Pen, Pencil, Paper and Forms


Venue: Resturant area
Procedure:
a. Prepare the Materials for Controlling and ordering stock.
b. Use and Fill in the given form
c. Follow the instructions.

Assessment Criteria:
Written Examination
Oral Questioning

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

Performance Criteria Checklist No. 3.1.1

CRITERIA
Did you…. YES NO

1. Have a paper, forms and pen?


2. Follow the instruction given?
3. Spent the 1hour minutes inside the classroom?
4. Provide the uses of all the materials?

Comments/Suggestions:

____________________________________________________________________________________
____________________________________________________________________________________
_______________________________________________________________

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

Learning outcome 2. PROCESS STOCK ORDERS

Learning Activities Special Instruction


1. Read Information Sheet 1.1.1
On ORGANIZE STOCKTAKES

Read Information Sheet 1.1.1-1.1.1


2. Answer Self-check 1.1.1 and answer every Self check in every
Compare anwers with answer Information Sheets. Check your
key 1.1.1 answers by looking at the Answer key
at the following page.
3. Perform Task Sheet 2.1.1 Task Sheet will help you practice
On PROCESS STOCK your skills.
ORDERS You may refer to Training Activity
Matrix for Learners as a sample.
4. Evaluate your own output The Performance Criteria Checklist
using performance Criteria will guide you evaluate you work as
Checklist 3.1.1 you evaluate your work as you are
practicing your skill.

If you have questions about the use


of the matrix, please ask your trainer

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

INFORMATION SHEET 1.1.1

ORGANIZE STOCKTAKES
Stocktaking: the listing and counting of items in stock
Periodic stocktaking is usually requested by the accounting department. The data
obtained from the exercise is used in the preparation of the company’s financial
statements and for costing of the stock items or products in which stock items are
used.
Organizing a stock take: Identify stock to be counted
• Confirm location of stock
• Assemble stocktaking team
• Instruct team on method to be used for exercise
• Prepare tools (paper, pencils, pens, inventory list, gear, etc.
• Advise auditors, if stipulated
• Confirm date, time and place for stocktaking
The stock control personnel may do stocktaking on an ad hoc basis to verify
particular item(s).

Stocktaking Reports
As soon as stocktaking is completed, data must be collated, re-checked and
compared and a report submitted in the form required by the enterprise/company.
Stocktaking Procedure
A stock list is prepared with the items usually stocked.
• The stock is located
• The identifying marks are compared with that on the list
• The stock is counted /weighed and recorded
• Have team members verify count or weight. Team members
usually work in pairs.
• The stock take data is collated
• A report is prepared and presented to relevant body.
• Make adjustments (overages or losses) to stock record once
authorization is obtained from the relevant body, e.g.
accounts.
Pay attention to detail when organizing stocktaking

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

SELF CHECK 1.1.1

2. How do you monitor and maintain stock levels?

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

ANSWER KEY 1.1.1

1. MONITOR AND MAINTAIN STOCK LEVELS

Re-order point - the inventory/stock position when a new order should be placed.
Each company has to determine the level of stock it wants to carry. Once determined,
systems must be put in place to monitor and maintain them.
Stock movement may be tracked manually and an order placed when the reorder
point is reached, as indicated by entries on the stock card. Manual tracking requires
that the stock clerk be alert and make daily checks on his stock. They are many
software applications available to monitor stock electronically. Once various critical
points are determined and entered, these systems automatically alert you to changes
that need your attention. Your computer will tell you (a) which item needs to be re-
ordered now (b) what product’s shelf life has expired (c) the products that are too long
in the inventory (d) prints, purchase requisition and orders will give you reminder
regarding time frame

21
ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

Task Sheet No. 2.1.1


Title: Process Stock Orders

Performance Objective:

Given the necessary materials, the trainee must be able to perform


tasks within 1hour minutes.

Materials: Pen, Pencil, Paper, food supplies, clip board and Forms
Venue: Stock room
Procedure:
a. Prepare the Materials for processing stock orders.
b. Use and Fill in the given form
c. Follow the instructions.

Assessment Criteria:
Written Examination
Oral Questioning

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

Performance Criteria Checklist No. 3.1.1

CRITERIA
Did you…. YES NO

1. Have a paper, forms and pen?


2. Follow the instruction given?
3. Spent the 1hour minutes inside the classroom?
4. Provide the uses of all the materials?

Comments/Suggestions:

____________________________________________________________________________________
____________________________________________________________________________________
_______________________________________________________________

23
ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

Learning outcome 3. MANAGE STOCK LOSSES

Learning Activities Special Instruction


1. Read Information Sheet 1.1.1
On Manage stock losses

2. Answer Self-check 1.1.1 Read Information Sheet 1.1.1-1.1.1


Compare anwers with answer and answer every Self check in every
key 1.1.1 Information Sheets. Check your
answers by looking at the Answer key
at the following page.
3. Perform Task Sheet 2.1.1 Task Sheet will help you practice
Draft a purchasing agreement for your skills.
purchasing kitchen equipment. Ask You may refer to Training Activity
your learning facilitator to Matrix for Learners as a sample.
assist/guide you.
Make a study of your institution’s
stock ordering and recording system.
Is it an efficient and effective system?
Have your learning facilitator arrange
for you to observe at least two other
systems operating elsewhere so you
will be able to make comparisons.

4. Evaluate your own output The Performance Criteria Checklist


using performance Criteria will guide you evaluate you work as
Checklist 3.1.1 you evaluate your work as you are
practicing your skill.

If you have questions about the use


of the matrix, please ask your trainer

24
ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

INFORMATION SHEET 1.1.1

IDENTIFY LOSSES

Whether periodic or ad hoc, on completion of a stocktaking exercise,


stock losses may be identified. Stock losses are differences between
quantity/weight on record and the physical count. Stock losses may be
attributed to careless record keeping, breakages/ spillages, pilfering,
damage or infestation by pests and incorrect storage. These losses should
be assessed and compared with the forecast for potential losses on a
regular basis. Such assessment and comparison will inform the financial
effect on the operations.

Reporting Stock Losses

Losses should be reported to the relevant body as soon as they are


identified. The report should be submitted according to the procedure
stipulated by the enterprise. Where possible, the report should include
an explanation for the loss and its cost.

Avoidable losses

Some stock losses may be prevented by exercising due care:

 Breakages
 Infestation
 Improper storage
 Inaccurate record keeping
 Pilferage

Investigating why avoidable losses occur should be undertaken to


prevent their recurrence.

Solutions

Avoidable losses may be prevented by:

 Staff training
 Developing and implementing pest control programme
 Storing products/stock in the recommended environment
 Securing the storeroom and allowing only authorised personnel to enter or
remove
stock
 Re-visiting the lay out of the storeroom and assessing accessibility of stock

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

PROCESS ORDERS FOR STOCK

Prepare purchase requisition. Requisition should: display item; identify a supplier;

• State quantity needed; state cost of item and expected delivery date.
• Obtain purchase order from designated authority within the enterprise.
• Check the purchase order to see it accurately reflects the purchase
requisition
• Send purchase order to supplier
• Check delivery status with supplier

Purchase order: A letter or prescribed


form authorizing purchase of an item
from a supplier.

Be accurate when processing records


Maintain Stock Ordering and Recording Systems

• A file/copy of the purchase order should be kept


• As soon as an order is received update the stock control system
• Update system with changes in specifications, stock number and
supplier as soon as notification is received
• Review high limits and low limits and re-order points
• All stock movements must be recorded.
• Do random spot checks to verify records
Purchase and Supply Agreements
Purchase and supply agreements outline specific terms and conditions of purchases
and supplies between individuals or enterprises. They may relate to:

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

SELF CHECK 1.1.1


1. How do you avoid losses of supplies?
2. What are solutions to prevented of losses?

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

ANSWER KEY 1.1.1

1. Avoidable losses

Some stock losses may be prevented by exercising due care:

 Breakages
 Infestation
 Improper storage
 Inaccurate record keeping
 Pilferage

Investigating why avoidable losses occur should be undertaken to


prevent their recurrence.

2. Solutions

Avoidable losses may be prevented by:

 Staff training
 Developing and implementing pest control programme
 Storing products/stock in the recommended environment
 Securing the storeroom and allowing only authorised personnel to enter or
remove
stock
 Re-visiting the lay out of the storeroom and assessing accessibility of stock

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

INFORMATION SHEET 1.1.1

PROCESS ORDERS FOR STOCK

 Prepare purchase requisition. Requisition should: display item; identify a


supplier;
state quantity needed; state cost of item and expected delivery date.
 Obtain purchase order from designated authority within the enterprise.
 Check the purchase order to see it accurately reflects the purchase
requisition
 Send purchase order to supplier
 Check delivery status with supplier

Purchase order: A letter or prescribed


form authorising purchase of an item
from a supplier.

Be accurate when processing records

Maintain Stock Ordering and Recording Systems

 A file/copy of the purchase order should be kept


 As soon as an order is received update the stock control system
 Update system with changes in specifications, stock number and
supplier as soon as notification is received
 Review high limits and low limits and re-order points
 All stock movements must be recorded.
 Do random spot checks to verify records

Purchase and Supply Agreements

Purchase and supply agreements outline specific terms and conditions


of purchases and supplies between individuals or enterprises. They may
relate to:

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

 Quantity discounts
 Product guarantees
 Payments
 Method of shipping/transportation
 Pricing
 Minimum order quantity
 Quality
 Product usage
Details of these agreements must be adhered to when ordering or supplying
goods.

ACTIVITY

Draft a purchasing agreement for purchasing kitchen


equipment. Ask your learning facilitator to assist/guide
you.
Make a study of your institution’s stock ordering and
recording system. Is it an efficient and effective
system?
Have your learning facilitator arrange for you to observe
at least two other systems operating elsewhere so you
will be able to make comparisons.

Learning outcome 4. FOLLOW UP ORDERS

Learning Activities Special Instruction


1. Read Information Sheet 1.1.1
On

2. Answer Self-check 1.1.1 Read Information Sheet 1.1.1-1.1.1


Compare anwers with answer and answer every Self check in every
key 1.1.1 Information Sheets. Check your
answers by looking at the Answer key
at the following page.
3. Perform Task Sheet 2.1.1 Task Sheet will help you practice
On your skills.
You may refer to Training Activity
Matrix for Learners as a sample.
4. Evaluate your own output The Performance Criteria Checklist
using performance Criteria will guide you evaluate you work as
Checklist 3.1.1 you evaluate your work as you are
practicing your skill.

If you have questions about the use


of the matrix, please ask your trainer

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ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

INFORMATION SHEET 1.1.1

MONITOR DELIVERY PROCESS

Once the supplier receives the order, and a delivery date is agreed on, the stock
controller contacts the supplier at regular intervals to ascertain the status of the
order and whether the delivery deadline will be met. Preparations are made to receive
and store the goods when delivered.

ACTIVITY

Have your learning facilitator arrange time for you in the


receiver and delivery department of your company. Write a
report detailing
the delivery, receival and storage procedures. Discuss your
findings/observations with your learning facilitator.

SELF CHECK 1.1.1

31
ASIAN DEVELOPMENT FOUNDATION COLLEGE
Bliss, Sagkahan, Tacloban City

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