Business Beat’ What’ sonthe shelf? | Good inventory management means having enough ofthe right merchandise on hand at the right time and the right price. There is more to this than simply making sure to order early. The retailer needs to exercise a strict physical control over inventory to avoid ordering too much or too little. And, since the resources are limited, the retailer also needs to exercise a strict financial control as well. Physical and financial control over inventory go hand in hand. But we'll confine ourselves, in this column, to physical control and dis- cuss financial contro! in the following ‘by Phil Hart, Manager, Terrace - Federal Business Development Bank columns. There are four approaches to physical inventory control: perpetual unit control, basics book, physical count and visual control. Perpetual unit control consists of maintaining a continuing rec- ord of each item of merchandise, a record which includes daily sales, stock on hand, reorder time, cost and retail price and other pertinent information. The retailer. should be able to look at the record and know what is in stock, how much money has been in- vested in that stock, how quickly it is moving, how much should be re-ordered and how often. There are many forms of perpetual unit control systems. The ‘small retailer will adapt the one most suitable to the situation. Basics book is a spin-off from perpetual unit.control. Basics are those items which sell the best — the retailer’s bread and but- ter so to speak. They can account for as much as 80 percent of ~ gales, and, of course, most of the retailer’s profit.. _ A basics book is, effectively, a segregated record of those fast moving items, kept in a way which is easily monitored so that the retailer will never be in short supply. A basics book will also help the retailer to track changes i in buying habits of customers. Items which are basic now may. not be basic’a month from now. Physical count and visual control of inventory are just that. A physical count of the items in stock at year-end is necessary for tax purposes and for ensuring accuracy in record-keeping. Some retailers’ make a physical count more frequently as a way of cross-checking other inventory.tecords, as.a safeguard against theft and damage and as a way of spotlighting slow-moving or old merchandise. Visual control is seeing what stock is on hand and. re-ordering as indicated. It is used mostly by the small retailer whose stock is visible on the shelves and which can be resupplied in a matter of hours. Visual control requires a continuing scrutiny if it is to work. Even then, the risk of error and loss of control can be large relative to a perpetual unit control. Physical control of inventory also includes checking each i in- coming order for damage and for accuracy of count. Incoming goods go to the back of shelves and the goods already on the shelves moved to the front. In essence, physical control of inventory is a system which gives the retailer a continuing record of each unit of merchandise in, each unit out, and units in stock. Financial control of inven- . tory consists of relating merchandise in inventory to anticipated sales. We'll get into that in our next column. TERRACE DL #5548 Terrace Review — Wednesday, November 30, 1988 13 OTEM FORD In an effort to better service our customers, TOTEM FORD will have extended hours in their Ser-. vice Department commencing November 28, 1988. Service hours will be: 7:30 a.m. to 6:00 p. m, Monday to Saturday 4631 KEITH AVENUE, TERRACE, B.C. 635-4984 CALL TOLL FREE - 1-800-772-1 128 The Task Force on Benefits for Northern and Isolated Areas: (left to right) vice-chairman Ed- ward Poole, chalrman Rene Brunelle and vice-chairman Michael McGillivray. Based on In- formation recelved in Terrace last Friday, these three will be deciding if their recom- residents. _-Mendations to“the government. should include special tax breaks for local and area Tax rules under review The views of seven represen- tatives for Terrace area residents have been added to the files of the Task Force on Tax Benefits for Northern .and Isolated Areas, but it will probably be more than a year before we hear _ the results. _ by Tod Strachan According to Task Force chairman Rene Brunelle, presen- -tations made in Terrace last Fri- day basically agreed that everyone in the area should be allowed an additional northern deduction “on their income tax due to the high cost of air travel, or the only other alternative, the time and cost of the 1,000-plus _ drive to Vancouver for medical . . Or other reasons. . Giving presentations to the Task Force were Gordon Olson, ''president of the Northwest Real Estate Board, Elaine Parmenter, Rosswood Community Associa- tion, Connie Delmarque-Smith and Maxine Inglis of Mills Memorial Hospital, Richard Rose of the Terrace Kinsmen Club, Sandy Sandhals represent- ing Lakelse Lake residents, and Mayor Jack Talstra. ‘The Task Force was first pro- ‘posed by Finance Minister . Michael Wilson in the 1987 ‘federal budget due to disparities THE SIGN OF A GOOD BUSINESS NEIGHBOR . . THE SIGN OF A MERCHANT ‘WHO CARES | ABOUT PEOPLE... This emblem identifies the elvic-minded businessmen who sponsor | “Hetone Wagon In the community. - Alma 638-1204 Vi. 635-5672 Terry 638-8178 in communities listed as being eligible for deductions in north- ern and isolated communities. Task Force vice-chairman Ed- ward Poole said the problem began in 1978 when the federal . government allowed special tax breaks for an elite group of pro- _ fessionals and bureaucrats as an incentive. to work in isolated communities. -These special deductions were to be phased out as each com- munity developed and became ineligible. But, says Poole, the government decided this was un- fair in 1987 and changed the system to include e every taxpayer in eligible communities. When’ announcing this change how- ever, Poole says, Wilson recog- nized the fact that the system ~ was still unfair because in many cases workers in neighboring communities were eligible for different levels of tax deduc- tions. Wilson’s solution was the $2.8 million, three-man Task Force assigned to visit affected north- ern and isolated communities across Canada to review the ef- fect of current taxation policy and to recommend a revised policy which could more fairly distribute and award special tax deductions. At the present time, eligibility for any allowance varies accord- ing to geographic location: com- munities north of the 60th parallel, communities between the 55th and 60th parallel, and communities south of the 55th parallel which are deemed through another set of criteria to be ‘‘isolated”. The criteria for determining if a community is isolated looks at population, ac- cess by road and the frequency of air, train or ferry links, the proximity to larger centers with a population over 10,000 and: local climate and vegetation. Task ' Force members are 68-year-old Brunelle, a resident of Moonbeam, Ont., who has 23 years of experience in northern . communities as a member of the Ontario cabinet; Edward Poole, a lawyer from Cornerbrook, Newfoundland; and vice- chairman Michael McGillivray from Prince George, who has 30 years’ experience in public ac- counting. Their recommenda- ‘tions are due by Oct. 31, 1989, and any policy changes will be retroactive to the 1988 taxation year. REMARKABLE SUCCESS Flourishing Shoplifting Prevention Corporation seeks industrious person or progressive company for ex- clusive regional Dealership due to exceptional solid growth and high demand. For details, call: | . Mr. Abramson — 1-251-1000 117300 CHRISTMAS MAGIC FOR CHILDREN AT MISTY RIVER BOOKS 4606 Lakelse Avenue, Terrace, B.C. Telephone 635-4428 Monday to Friday — 9 a.m. to 9 p.m. Saturday ~~ 9 a.m. to 6 p.m. a at ete . :