loading  by  carriers  (transportation  service).  Afloat,  an area may be designated to assemble material that will be off-loaded from the ship and subsequent transfer to the  first  or  final  destination.  (See  NAVSUP  Publication 573   for   documentation   information   of   hazardous materials.) INVENTORY Maintaining   accurate   records   of   quantity, condition,  and  ownership  of  material  greatly  helps  in achieving maximum economy in management and use of   supplies. Verification   of   these   records   is accomplished through physical inventory. Basically, physical inventory is the actual count of an item in its storage  site.  In  the  supply  system,  physical  inventory includes other functions as listed in the following text: l l l l l verification  of  stock  record  balances, conducting   investigations, analyzing  inventory  discrepancy, adjustment of stock records, and adjustment of financial records. The inventory of items that are classified, sensitive, and  pilferable  is  called  controlled   item   inventory. Information  concerning  the  physical  inventory  program in the Navy is described in NAVSUPINST 4440.115. Planning the Inventory When  planning  the  inventory,  consider  the following factors: number  of  items  involved, number  of  locations, manpower  required, anticipated   productivity, scheduling to obtain maximum efficiency and accuracy, and preparation of material in storage to facilitate counting. You can use these factors to outline different steps needed to accomplish the inventory. Assignment  of  Inventory Personnel Each person participating in the inventory must be given a specific assignment. To facilitate teamwork, conduct  necessary  training  for  all  personnel  involved before performing the inventory. Preparation of Material for Inventory Proper  storage  practices  can  make  performing  an inventory  easy.  Before  starting  the  inventory  process, storage  personnel  must  prepare  the  materials  for inventory.   Storage   personnel   must   ensure materials  are that l l l l properly identified and clearly marked, stored in a minimum number of locations, uniformly  stored  by  quantity  per  container, package, or pallet, marked  “DO  NOT  INVENT0RY”  if  excluded  in inventory  count. SECURITY OF MATERIAL IN STORAGE As a general procedure, material in storage must be kept  under  lock  and  key  when  practicable.  The requirements  for  maintaining  security  of  material  are described  in  NAVSUP  P-485  and  NAVSUP  Publicat.ion 1,  Volume  2.  Protecting  material  in  storage  and preventing  internal  pilferage  are  two  of  the  functions  of a  storage  operation.   Preventing loss of material can save  dollars  and  time. If not properly secured, material losses in such proportions   could   jeopardize   the   mission   of   the command.  Loss  of  critical  supplies  for  tactical  use could result in the unnecessary loss of life and danger to  national  defense. Control Measures Specific  measures  for  preventing  pilferage  may vary  in  different  activities.  The  most  practical  and effective method used for controlling pilferage is the establishment of physical security and psychological deterrents. These can be accomplished in a number of ways as described in the following: 2-23