Ops Excellence Workshop - Stocktake quiz

Why is proper execution of stocktake important to a business?

• Increases gross profit of a business

• Increases the amount of inventory a business can carry

• Results in an accurate representation of a business's health

• All of the above

Answer explanation

Good practices during stocktake helps to minimize discrepancies between actual physical inventory and recorded inventory in the books.

An accurate valuation of a business's inventory can help management correctly identify gaps in performance and helps them to make better decisions

Examples of gaps in performances include:

- Overstocking

- Damaged stock

- Theft/pilferage

- Excess write offs

- Slow moving SKUs

Which of the following is incorrect about stocktake preparation?

• Performing Goods Received (GR) late will not affect stocktake

• Performing write off (Eforms) late will result in stocktake loss

• Duplicated POs/QPOs should be cancelled before stocktake

• Counting of stocks will include items where store did not perform GR yet

Answer explanation

During stocktake, counting of stocks will include items where store did not perform GR yet. 

This will result in stocktake gain at the upcoming stocktake

When store performs GR after the stocktake, this will result in stocktake loss in the following stocktake.

Store is to check and ensure that GR is performed for all PO/QPO/IBTs/STOs where stock is included in stocktake count.

What should be avoided when preparing for stocktake?

• Ensuring all Quick POs received on eve of stock take are created before 2330 hr

• Closing outstanding documents for RTVs, RSTOs and IBTs

• Informing AM to cancel wrongly created POs / QPOs / RTVs

• Submitting Eforms to respective Area Managers

  after stocktake

Answer explanation

Please note to include sufficient time for Cheers AM to approve write offs. If approval is not given before stocktake day, discrepancy will still reflect.

Which of the following is not one of the common reasons for write-offs?

• Expiry/damage

• Out of Stock

• Theft/shrinkage

• Stock rotation & freshness

• Overstock

Answer explanation

Expiry or Spoilage: 

Products that have reached their expiration dates or have become spoiled due to improper storage or handling are often written off to maintain quality standards and ensure customer safety.

-

Stock Rotation and Freshness:

Supermarkets prioritize providing fresh and high-quality products to their customers. As part of regular stock rotation practices, older items may be removed and written off to ensure customers have access to the freshest products available.

-

Overstock or Slow-Moving Items:

If supermarkets have excess inventory or products that are not selling as expected, they may choose to write off these items to manage inventory levels effectively

-
Theft or Shrinkage:

In cases of theft or significant shrinkage (unaccounted loss), supermarkets may need to write off the missing inventory to maintain accurate records and financial integrity.

Which of the following is TRUE about Auto Break bulk?

Auto breakbulk will takes place when ....

• Both Parent and Child SKU has negative SOH

• Parent SKU has negative SOH

• Child SKU (1s) has positive SOH

• Child SKU (1s) has negative SOH (i.e. Sales)

Answer explanation

Expiry or Spoilage: 

Products that have reached their expiration dates or have become spoiled due to improper storage or handling are often written off to maintain quality standards and ensure customer safety.

-

Stock Rotation and Freshness:

Supermarkets prioritize providing fresh and high-quality products to their customers. As part of regular stock rotation practices, older items may be removed and written off to ensure customers have access to the freshest products available.

-

Overstock or Slow-Moving Items:

If supermarkets have excess inventory or products that are not selling as expected, they may choose to write off these items to manage inventory levels effectively

-
Theft or Shrinkage:

In cases of theft or significant shrinkage (unaccounted loss), supermarkets may need to write off the missing inventory to maintain accurate records and financial integrity.