TYPES OF INVENTORY

The types and frequency of inventory are not always a matter of preference. Minimum inventory requirements are established by NAVSUP and vary according to the type of ship or activity. However, the TYCOM, commanding officer, or supply officer may direct specific inventories that exceed the minimum requirements. The types of inventory afloat and ashore are discussed in the following paragraphs.

Bulkhead-to-Bulkhead

A bulkhead-to-bulkhead inventory requires a physical count of all stock material within the ship or within a specified storeroom or storage area. This type of inventory is normally taken during an integrated logistics overhaul (ILO), as part of the re-AVCAL process for aviation activities, or when directed by higher authority. A bulkhead-to-bulkhead inventory may also be required when a random sampling inventory within a specific storage area indicates less than 90-Percent inventory accuracy.

Wall-to-Wall

A wall-to-wall inventory is a scheduled inventory of all material in a storage area ashore. This type of inventory is recommended only at those activities where the range and depth of stock is small and a complete inventory can be easily performed. A wall-to-wall inventory may also be required when sample inventories are less than established goals.

Specific Commodity

A specific commodity inventory requires the physical count of all items within a generic segment of material such as cognizance (COG) symbol, federal

supply class (FSC), special material identification code (SMIC), or a group of items supporting the same function such as aircraft tires or dry cell batteries.

Special Material

Certain items are specifically designated for separate identification and inventory control. A special material inventory (also referred to as selected item inventory) requires the physical count of all such items. Items are selected based on their physical characteristics, cost, mission essentiality, and criticality. Items included in this category are labeled as hazardous, classified, repairable, shelf-life, or pilferable.

Specific Item (Spot Inventory)

A specific item inventory is referred to as a spot inventory. A spot inventory is an unscheduled inventory required to verify the quantity of material on hand as a result of a total or partial not in stock (NIS) issue transaction. This transaction is referred to as a warehouse refusal. Spot inventories are also taken as a result of directives from external commands such as an inventory manager or a TYCOM.

Velocity

A velocity inventory is based on the assumption that stock record errors increase with issue frequency. Therefore, the physical inventory effort should be concentrated on items that experience frequent demands.

Random Sampling

A random sampling inventory is used to measure stock record accuracy for a segment of material based on the physical count of a specified number of randomly _{selected items.} The percentage of items to be inventoried under the random sampling method is 5 percent of the total items carried, less the number of

items that are completely and periodically inventoried. The items that are periodically inventoried include the fast movers and special material; for example, if a ship carries 40,000 items in stock of which 2,000 are fast movers and 600 are special materials. The number of items to be scheduled for annual inventory by random

sampling method will be 1,870 (40,00 - 2,600 = 37,400 x 5%= 1,870). The accuracy rate is computed mathematically by subtracting the number of errors from the total number of items inventoried, then divide the difference by the total number of items inventoried.

For example, the total number of items inventoried is 375 and the number of errors is 24 (375 - 24 = 351, then 351 + 375 = .9360). The accuracy rate is 93 percent. When inventory accuracy falls below 90 percent, a bulkhead-to-bulkhead or wall-to-wall inventory maybe required for the storeroom or storage area involved.

All quantity and location differences found during the random sampling inventory must be adjusted and posted in the stock records. However, the differences that should be counted as errors are as follows:

. Each location difference . Each quantity difference when the quantity

adjustment exceeds 10 percent of the stock record balance or the adjusted value exceeds $25.

When computing the accuracy rate, count the location and quantity errors in the same stock record as only one error. Changes to the cognizance symbol, stock number, unit of issue, unit price, management codes, and so forth that are required as a result of the inventory are not considered as errors when computing the inventory accuracy rate.

SCHEDULED INVENTORY

Some items should be inventoried at a specified interval to ensure effective control of material needed to support the mission. The inventory requirements in Table 5-1 are considered the minimum necessary for effective control of material.

NONSCHEDULED INVENTORY

This is the type of inventory that is conducted to investigate the inaccuracies in the stock records found during issue process, random sampling, or supply inspection. Nonscheduled inventories also include those that are occasionally required of certain items as

Table 5-1.-Scheduled Inventory Requirements

required by the item manager, type commander, or other authorities. An example of a nonscheduled inventory is the spot inventory. A bulkhead-to-bulkhead inventory of specified storeroom(s) or a specific commodity that is required as a result of an unsatisfactory random sampling or supply management inspection is an example of nonscheduled inventories.

ASHORE

The NAVSUPINST 4440.115 describes the physical inventory program for shore activities. The AKs assigned to shore billets are responsible for managing only a small portion of supply stock. The AKs are responsible for the supply assets located in the aviation support division (ASD)/supply support center (SSC). Personnel assigned to shore billets should familiarize themselves with the inventory program to cope with reorganizations.

Physical Inventory Requirements

The physical inventory required ashore is classified as the unscheduled and scheduled inventory as described in the following paragraphs.