58 
THE MODEL STOCK PLAN 
in each department we determine in advance the percentage 
of our total stock that should be carried in staples, novelties, 
extra-large and extra-small sizes, related lines, and so on. 
Now we come to the mechanics of making our plan. How 
long a time should be covered in the plan must vary with the 
type of merchandise. If we were selling old-fashioned base- 
burner stoves, our principal selling period would be merely 
a couple of months in late autumn, and we should plan to 
have our stock practically cleared out by, say, the middle 
of December. On the other hand, we may expect to sell 
men’s white broadcloth shirts the year round, with a peak of 
volume beginning in the late spring. 
Since, however, the principle is the same in either event 
and an attempt to differentiate may be confusing, let us 
assume throughout the following explanation that we make 
our general plans twice yearly, to cover the usual department 
store periods of six months each, August through January, 
and February through July. The usual large store’s mer- 
chandising plans cover, in general, the following forecast 
figures: 
1. Stock, first of period. 
2. Purchases for period. 
3. Mark-downs. 
4. Stock, end of period. 
5. Sales for period. 
6. Gross profit. 
7. Expenses. 
8. Merchandise profit. 
9. Earned discounts. 
In the usual practice of the past—mnot in the Model Stock 
Plan—the six months’ stock and sales plan started with an 
allotment of capital to each department. This was clearly 
not the best way. The most profitable way is to build up 
the stock of the department to the requirements of the 
Model Stock Plan, which is the way to the greatest total 
profits. If, then, this stock is too large for the sales that our 
department can be reasonably sure of, we study still more 
carefully the amount of stock. Once we are sure of our