Paradise Bay Resort Co. Ltd.

Standard Operating Procedure

TITLE:
Category: Stock Management
Doc No: FIN-08 Prepared By: Date Prepare:
Name/Title Dd/mm/yy
Revision No: 1.0 Reviewed By: Date Reviewed:
Name/Title Dd/mm/yy
Effective Date: Approved By: DOF/GM Date Approved:
Dd/mm/yy Name/Title Dd/mm/yy
Applied to: All Departments

VERSION HISTORY

VERSIO REVISIO
APPROVED BY DESCRIPTION OF CHANGE AUTHOR
N N DATE
1.0 DOF/GM DOF

POLICY DETAILS

Purpose To keep minimum stock levels and allow efficient control over stock
replenishment, without compromising the smooth running of resort
operations.
Policy statement Par levels should be set in all storage areas for beverage, dry foods and
general items.
All par levels will need to be recorded, adhered to, and reviewed
periodically.
Scope All employees and departments are required to comply.
Terms & Definition
Exceptions Project OS&E, market list
Related Policies or Inventory Control
References
Roles & Roles Responsibilities
Responsibilities

Procedures 1. Minimum and maximum par stock levels should be established for
all items kept in store in order to keep inventory at the lowest
possible level sufficient for continuous consumption.
2. Par stock levels should be determined by the relevant Department
Head, Purchasing Manager and Storekeeper, considering the
following:
- Actual consumption of similar goods over a fixed period of

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 Paradise Bay Resort Co. Ltd.

time in the past

- Expected demand.
- Purchasing lead time
- Total value of the purchase, minimum quantity per order,
maximum period that goods can be stored, storage space,
etc.

Once defined, a list of minimum/maximum par-stock levels per item

must be established and distributed to the Storekeeper, Purchasing staff
and Cost Controller.

3. The inventory file should be reviewed on a line-by-line basis by

the Storekeeper to determine items that have reached the reorder
point. A store purchase requisition will then be prepared and order
placed accordingly.

4. For strict and easy follow-up, detail of the minimum/maximum par

stock level should be clearly stated on the store purchase requisition.
The par-stock level should be reviewed periodically, based on past
consumption, future plans and purchasing lead time (at least 6
months).

Contact points DOF

Forms & Templates

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