The model stock plan

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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

HOW TO PLAN AND CONTROL A MODEL STOCK 359 ground here, it is necessary for us—whether we are the owners of a small store or the management of a large store—to back up this basic principle by devising methods to assure a sales volume that will give the maximum total profit. This means methods that will keep this stock selling rapidly enough to avoid losses from mark-downs, obsolescence, and the other ills that slow-moving stocks are heir to. Some objection may be raised to this at the early stages of the study of this plan. Such an objection from the man- agement, however, always disappears with the realization of how much the total profits can be increased. The Model Stock Plan 1. Adjusts the stock to the maximum sales. 2. Adjusts buying to large enough quantities to bring the lowest prices from those from whom purchases are made. 3. Reduces mark-downs and losses by obsolescence. 4. Gives an operating method and a complete stock with which no competitors who do not use the Model Stock Plan will be able to compete. 5. Forces the business to operate along lines of mass distribution which will eventually make profitable even the departments which at present are non-paying. Strangely enough, even in many otherwise competently managed stores, the thinking of management and department buyers has not been really unified. Here is a field in which the Model Stock Plan can be of utmost use to the manage- ment and to the buyer. It performs no miracle. But both the management and the buyer approach the same problem of building up the stocks by a definite principle definitely agreed upon. Many a non-paying department fails to pay because of one great weakness in management: the arbitrary determination of the sums set aside for publicity and the arbitrary assignment of personnel and selling area. When we start to build up our stock from the Model Stock Plan, we may temporarily try to operate on too small a scale, because we have not enough capital to go ahead with it, or because we are not sure that the necessary increase of sales can really be attained. One of the big advantages of the

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