The model stock plan

Bibliographic data

Monograph

Identifikator:: 1820833348

URN:: urn:nbn:de:zbw-retromon-210730

Document type:: Monograph

Author:: Filene, Edward A. http://d-nb.info/gnd/123562244

Title:: The model stock plan

Place of publication:: New York

Publisher:: McGraw-Hill Book Company

Year of publication:: 1930

Scope:: xiv, 253 Seiten

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter IV. How to plan and control a Model Stock

Collection:: Economics Books

50 THE MODEL STOCK PLAN out so rapidly that they make way for fresh, new merchandise by the time it is in demand. Under the Model Stock Plan this can be done with much less loss and often with net profits. The management has an important share in making the Model Stock yield the greatest total profit. Under the Model Stock Plan, for the first time under any method of merchandising, we have at hand a real measure of how large a stock investment should be and how large the publicity appropriation should be. By the usual practices, these figures are shrewd rule-of-thumb guesses based on successful retail experience. By the Model Stock Plan we are definitely shown the amounts we must employ. The Model Stock Plan will not call for an investment larger than the smallest sum that will give a stock complete enough to bring greater total profits than can be obtained either from a larger stock or from a smaller stock. If, as may or may not happen in any single instance, the figures according to the Model Stock Plan accurately set call upon the management to appropriate larger sums, the management will be glad of the opportunity. For it knows definitely that these will force a much larger business and a much greater total profit. A manufacturer producing goods at bulk-demand price levels can meet and beat competition only if his volume of business is large enough so that the total cost plus overhead per unit is as small as or smaller than that of his competitors. What is true of mass production is equally true of mass dis- tribution. In the distribution of the articles made by mass production, the retail business eventually goes to those stores which buy in large enough quantities so that their manu- facturers can produce large enough lots to insure low over- head charges per unit. In planning ahead we shall find it most profitable to think of our planning as divided into three parts. And while we realize, of course, that the further ahead we can plan accu- rately on facts or on reasonable thinking, the better off we are, still we must avoid one danger. In any such planning there is always a possibility that the day by day needs may not be adequately visualized.

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