1. The CONTROL CYCLE refers to the complete pathway followed by a stock item , from purchase through to sale or consumption.

The steps followed by the new stock being purchased to replace the consumed item s it is named CONTROL CYCLE and has following steps: -PURCHASING -RECIVING -STORAGE -ISSUING -PRODUCTION -SERVICE -SALES Becouse of the large ammount of the stock beeng purchasd , in most large enterpr ises a CENTRAL STORE is responsable with the control of the stock.THE CENTRAL STORE is responsable for purchasing ,recieving , storin g and distrbuting stock to the appropiate departaments inside the estabilishment. So, once th stock is received it is stored respecting all the rules involved in this process and afte that sthe stock is distributed between departaments as it is the case.e.g : food will be stored inside the frid ges , feezers , dry stores and distributed to the kitchen depatament respecting OH&S and hfood safety guidlines(avoid dange r zone for food items and cross contamination etc) 2. For items that are ordered regularly a reorder point can be calculated using inf o on delivery lead time and estimated product demand. The reorder point can e calculated with the formula: REORDER POINT=LEAD TIME x U SAGE. There are two methods to determine the ammount of the product in the storage: a;THE PERIODIC METHOD : -used by enterprises with difficulties in recording the cost of price of item so ld. To setup this method involves:determination of wich products constitute stock,de ciding on items to be counted and the method of counting low cost items and completing appropriate invetnory forms. b:THE PERPETUAL METHOD: - it allows the user to maintain the greatest posible control over stock ,wich m ean it is the most effective inventory method. This methd involves recoring data continuousily on bth the ammount of stock on h and and the cost price of items in the storeroom using this method involves as well competing the inventory forms each item and f ollowing estabilished procedures for entering data. 3. purchase order: delivery note : record the delivery of an item invoice :detail the specification of the item credit note :issued by delivery personnel for items that are not delivered or did not meet specs detailed on the invoice

statement :sum up all the delivery info for the period including invoices an d credit notes stores receiving note:recorded notes when reciveing products in stores stores issue note:recorded notes for items that are not received in good conditi on or damaged alterated etc 4. Advantages of computerised control system : -rapid generatin of reports -automatic updates of data -flexibility for varying requirements -very litle torage space required for records -good security of data with iffrent access levels for diffrent staff Disadvantages of computerised control system : -costly initial set up -initialdata entry can be time consuming -regular maintenance of data is requred -regular back up is necssary -more suited tolarger estabilishments 5. a.9 months b.1ST MARCH c.APROX 1600 d.18 MONTHS 6.CLOSING STOCK USAGE FORMULA: OPENING STOCK VALUE + GOODS RECEIVED - STOCK CONSUMED = CLOSING STOCK VALUE IN OUR EXAMPLE:$15000(OPENING STOCK)+$10000(TRANSFER IN)-$14000(TRANSFER OUT)=$1 1000 - CLOSING STOCK VALUE 7.Minimasing stock losses in business: -introduce random spot checks and regularly stocktakes - monitorand adjust the spot checking and stocktaking prcedures in order to elim inate opportunities for stock loss.

8.PRINCIPLES OF KEY CONTROL : -records of all keys by all depataments(data sheets or computerised) -issuing keys on a needs basis only -regular replacement of keys and locks -imediate changig and reprogramming if and when master keys are lost or missing -restiction of master keys and sub master keys isuing -spot checks on staff who carry keys to ensure the keys re on the control of the correct staff and they are returned at the nd of the shift -security of spare key storage -restriction on duplicate keys

9.The objectives of stocktaking are : -determine the actual value of stock on hand -compare holdings with perpetual inventory levels -identify slow movingstock items -compare usages with sales -deter against los and pilferage -anlyse stock turnover rates

10.MANUAL STOCKTAKING PROCEDURES: -retrieving inventory stocktake forms -checking and updating stock items -freezing al purchases , deliveries issues and transfers -conducting the stocktake using the stock sheets -comparing the stocktake to the perpetual records -identfying and verifying discrepancies -reporting all discrepancies -costing each stock item -calculating COGS and profit data