Full text: The model stock plan

114 THE MODEL STOCK PLAN 
turnover. But it is possible that the Model Stock Plan 
may show conclusively, as we get into its specific application 
to our store, that some of our present stocks are so incom- 
plete and small that they prevent our getting the volume of 
sales we should have. In other words, when we go at it 
scientifically we may be forced to the inescapable conclusion 
that what we need is not smaller stocks for our present sales 
volume but actually a larger sales volume that will follow more 
complete and larger stocks. 
Let me emphasize right here that under traditional 
methods a larger stock is not necessarily a more complete 
stock. Under the Model Stock Plan a more complete stock 
may be smaller; but under the Model Stock Plan a smaller 
or a larger stock is bound to be more complete. 
Plainly, when we come to apply the Model Stock Plan to a 
store where traditional methods have prevailed, we shall 
find that in applying the plan we are shown precisely how 
large a stock we should have at a given time in order to earn 
the largest total profits. Within very narrow limits, the 
stock should be neither larger nor smaller than the ideal 
figure for our Model Stock. We shall thus determine how 
to build up the stock that will be most profitable and what 
the size of this stock must be. 
The size of this stock should not be cut down or enlarged 
by any arbitrary limitation, therefore, either by a money 
limit or any other limit. On the conirary, if the management 
of the business is determined lo make steadily the greatest total 
profits, then it will hold itself responsible and bound to make 
its publicity plans and appropriations and its other policies 
such that the turnover of the Model Stock will be fast enough to 
make it possible to keep the Model Stock continuously right. 
It will not do for the management to lay the blame on the 
department buyer so long as he is working the Model Stock 
Plan properly. As long as the management retains this 
buyer in its employ, so long is the management responsible 
and obligated to do its full part in obtaining the greater 
total profits that inevitably follow the Model Stock Plan 
properly applied.
	        
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