Reference no: EM132724893
SITXINV004 Task - Simulated Practical Observation
Objective of the task The objective of this task is to process stock orders, maintain stock levels, minimise stock losses, manage stocktakes and maintain all documents that relate to the administration of any type of stock.
Your task is to demonstrate your ability to process stock orders, maintain stock levels, minimise stock losses, manage stocktakes and maintain all documents that relate to the administration of any type of stock.
You must ensure when performing this task, you can demonstrate procedures to:
• Order, control and administer continuous and efficient supply relating to at least six different types of stock items
• Use stock control procedures to monitor and maintain stock levels for the above items over a stock life cycle period that includes a stocktake
• Produce and distribute stock control reports
• Complete above stock order and reporting activities within commercial time constraints.
Throughout the task, you must refer to policies and procedures (access the documents in your simulated manual provided by your trainer)
Refer to your simulated establishment manual
• SOP - Financial-policy-and-procedure-manual-template
• SOPs - Inventory - Stock control
• SOP - Commercial stock control & ordering
There are 5 parts to this assessment:
• Part 1 Maintain stock levels and records
• Part 2 Process stock orders
• Part 3 Minimise stock losses
• Part 4 Follow up orders
• Part 5 Organise and administer stocktakes
Your assessor will observe you demonstrating your ability to perform the following parts to this assessment, using the assessor observation checklist (appendix 5). You must achieve a satisfactory outcome for each criterion to successfully achieve a pass in this section.
Part 1 Maintain stock levels and records
You have been recruited as a new assistant to the purchasing officer at your simulated restaurant establishment. As a part of your new role you are required to order, control and administer continuous and efficient supply relating to at least six different types of stock items.
1.1You are provided with the following figures for the stock on hand for items:
1.1.1 You must use stock control systems and equipment to administer all stock control.
• Use a computer and keyboard to enter these figures into your Stock inventory control spreadsheet
• Maintain records of stock levels by performing calculations so that you can establish the value of the individual stock items as well as provide a total value of all stock items on hand.
• Monitor and adjust stock reorder cycles.
Note: To calculate the stock turn rate:
• determine your cost of goods sold
• determine the cost of stock on hand
• divide cost of goods sold by cost of stock on hand (cost of goods sold/cost of stock on hand) to reach your stock turn rate.
1.1.2 In accordance with the Stock inventory control spreadsheet, monitor and maintain stock levels and security to meet organisational requirements.
Write a detailed report on the following according to organisational procedures: (Appendix 1)
• Monitor stock performance, and identify fast or slow-selling items
• Identify any required adjustments to stock security procedures
• Identify other areas impacting stock management
1.2 Conduct a brief meeting with 3 colleagues (classmates)
In the meeting you must:
• Run through the stock levels and security report and outline the findings
• Inform colleagues of their individual stock ordering responsibilities.
Task Part 2 Part 2 Process stock orders
Now that you have maintained stock levels and records, you must process stock orders.
2.1 First, refer to organisation procedures for processing orders for stock.
Interpret the following procedures, located in your simulated establishment manual:
• SOP - Financial-policy-and-procedure-manual-template
• SOPs - Inventory - Stock control
• SOP - Commercial stock control & ordering
2.2 Process stock orders and record current accurate details in accordance with commercial time constraints.
1. Identify stock you always need and make sure you have sufficient supply.
2. Tighten the process of buying stock - knowing the volume sales per stock item will help you buy the right amount.
3. Negotiate deals with suppliers - avoid volume discounts (unless you're actually selling large volumes of the item), try to negotiate discounts for quick settlement (unless your cash position is poor), or negotiate for smaller and more frequent deliveries from your suppliers to smooth out your cash flow.
4. Don't let discount prices drive your stock buying decisions - buy stock you can sell at a profit in a reasonable time frame.
5. Keep accurate stock records and match them to purchase and supply agreements (Restaurant Supply Contractual Agreement, located in your simulated resource folder)
6. Reconcile incoming stock and invoices against purchase orders
Your assessor will observe you perform this part using the assessor observation checklist (appendix 6)
Task Part 3 Part 3 Minimise stock losses
Use the simulated stock control software and excel spreadsheets produced for the 6 different types of stock items.
3.1 Analyse the stock records to identify any discrepancies and minimise stock losses.
Use the Stock Inventory Control spreadsheet provided in the simulated resource folder. Record your findings on the following.
3.1.1 Regularly check storage of stock and ensure its protection
3.1.2Calculate your cost of goods sold
• Beginning inventory: The total amount of stock you have at the beginning of the time period
• Purchased inventory: All stock purchased between time period
• Ending inventory: The total amount of stock you have at the end of the time period.
To get the COGS, add your beginning inventory to your purchased inventory, then subtract your ending inventory from that total.
3.1.3 Be consistent with checks to track ingredient loss (prior to opening and after closing)
3.1.4 Follow First in First Out (FIFO)
3.1.5 Minimise food waste
Ensure:
• Correct food labelling
• Portion control
3.2 Once stock losses are identified, prepare a detailed report on losses. (Appendix 2)
In your report, you must:
• Identify avoidable losses and establish reasons for them.
• Recommend solutions and implement procedures to prevent future losses.
3.3 Meet with staff (Work team consisting of 3 classmates) to discuss reasons for stock losses
Record the meeting outcomes in the minute meetings provided (Appendix 3)
Your assessor will observe you perform this part using the assessor observation checklist (appendix 6)
Task Part 4 Part 4 Follow-up orders
It has now been a week since your stock order was processed and it is due to arrive in tomorrow.
4.1 Send an email to the supplier (Appendix 4)
In the email, you must:
• Monitor the delivery of stock to ensure agreed deadlines are met.
• Liaise with suppliers to ensure continuity of supply.
• Resolve routine supply problems or refer to appropriate person for action.
4.2 Once stock arrives, distribute stock within the organisation according to required allocations.
Your assessor will observe you perform this part using the assessor observation checklist (appendix 6)
Task Part 5 Part 5 Organise and administer stocktakes
5.1 Organise a full stocktake at appropriate intervals according to your simulated establishment's procedures.
5.1.1 Schedule stocktakes using the calendar provided (Appendix 5)
5.1.2 Prepare and distribute tools for stocktakes
• Clipboards
• Stock sheets - Use Microsoft Excel. Don't include the current number of inventories on hand. If inventory is barcoded, make sure barcodes are written down clearly
• Write-off sheets - Make sure you check the condition of the inventory as you count
• Pens - Use different colours. The audit trail can be easily followed if the first counter uses a blue pen, second counter uses a red pen, and the sheets are submitted to the stocktake coordinator who uses a purple pen
• Calculators
• Handheld scanners - For bar-coded inventory
Once you have prepared the inventory tools ready for the full stocktake, you must distribute them to staff ready for the administration of the stocktake.
5.2 Allocate stocktaking responsibilities to staff.
• Clearly identify what's in stock and where
• Make sure the stock room is clean and tidy and inventory is organised
• Discourage interruptions to reduce errors
• Count every item of your inventory. Don't estimate!
• Check the physical count against accounting records. Recheck discrepancies
5.2.1 Ensure you supervise staff participation throughout the stocktake operation.
5.3 Produce accurate stocktake reports within designated timelines.
5.3.1 Update your records
Once the stock take has been finalised, update the inventory records in your accounting package.
Note: A well-planned stocktake will result in minimal disruption, accurate inventory records and provides a basis for making informed business decisions.
5.4 Then, use you simulated stock control software to produce accurate stocktake reports for your supervisor before close of business.
Your assessor will observe you perform this part using the assessor observation checklist (appendix 6)
Attachment:- Assessment Task - Simulated Practical Observation.rar