MODULE 3 EXAM BLOCK 20203

LOGISTICS COURSE

**TYPES OF INVENTORY**

**a.  Complete  Inventory**

**b. Sample Inventory**

**c. Special  Inventory**

**d.  In-Use/In-Place Equipment Inventory**

**Complete  Inventory**

**-** conducted   using   the close warehouse method.  All items within the selected parameter are inventoried.  The warehouse area being inventoried is closed   except for   emergency   issues.   All    backlog transactions  are processed immediately upon completion of an inventory.

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**Sample Inventory**

**-**   developed  to  provide  better  use   of manpower and time.  This method serves the same purpose as a complete inventory, however, only a random sample of items need to be counted.   If  the  inventory  fails  the acceptable error rate,  a complete inventory is conducted.

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**c. Special  Inventory**  

**-** conducted by line item on an as-required basis.  Main reason is to correct out-of-balance condition resulting in warehouse refusal. 

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**In-Use/In-Place Equipment Inventory**

**-** usually performed only upon written request.  Conducted discrepancies that cannot be resolved by property custodian.

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National Item Identification Number

Last 9 digit of NSN (2 NCBC & 7 additional digit)

Supply

* make (something needed or wanted) available to someone; provide.
* To make available for use
* To furnish

3 classification of supply

* as to nature of property
* as to source of property
* as to technical service

**Expendable supplies**

Are those which are consumable or perishable in nature and those which lose their identities when attached to a major item property. 

Non-Expendable Supplies

Are those which are durable in nature and which when used do not suffer any material or substantial change or alteration in their sizes or forms. Generally, all equipment fall under this category.

**Republic Supplies**

Supplies purchased from appropriated or reimbursable funds of the AFP.

**Non- Republic Supplies**

Supplies acquired by means other than purchase from appropriated or reimbursable funds of the AFP.

**Military Assistance Program (MAP) Items**

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A non republic supply those supplies made available to the AFP by the US government through either Grant Aid at no cost ,or through purchase under the Mutual Security Military Sales Program.

FOUND IN STATION

supply un-accounted Property found in station regardless of source.

CAPTURED ENEMY PROPERTY

property captured from the enemy in the course of military operations, whether within or outside of the Philippine territorial jurisdiction.

RECLAIMED PROPERTY

Serviceable components reclaimed or recovered from condemned unserviceable property.

SALVAGED PROPERTY

Property which are unserviceable and beyond economical repair or property, the residue remaining after serviceable components have been reclaimed from condemned unserviceable property.

**Quartermaster**

as to technical service, Individual  issue except Firearms

**Ordnance**

as to technical service, Weapons, Vehicles, others

**Signal**

as to technical service, All  radios and accessories.

**Engineer**

as to technical service, Construction  materials & equipment

**Medical/Dental**

as to technical service, Used by the doctors and dentists**.**

**How many Classes of Supply**

10

**Class I**

**what classes of supply are** Subsistence, including gratuitous health  and welfare items;

**Class II**

**What classes of supply has** Clothing individual equipment, tentage, tool sets and tool kits, hand tools, administrative and housekeeping supplies and equipment, includes items prescribed in TO/E;

**Class III**

**What classes od suppy has** POL: Petroleum fuels, lubricants, hydraulic and insulating oils, preservatives, liquid and compressed gases, chemical products, coolants, anti-freeze compounds, and coal;

**Class IV**

**What classes of supply has** Construction materials to include installed equipment, and all fortification/barrier materials

**Class V**

**Classes of supply with** All types of ammunition including chemicals, radiological and special weapons, bombs, explosives, mines, fuses, detonators, pyrotechnics, missiles, rockets, propellants and other associated items;

**Class VI**

**Classes of supply with** Personal demand items (non-military sales items);

**Class VII**

**Classes of supply with** Major end items, vehicles, tanks, launchers mobile shops or combination of end products which is ready for its intended use.   

**Class VIII -**

  **Classes of supplies with** Medical and Dental Materiel including peculiar repair parts.

**Class VIII A**

**Classes of supplies with** Medical Consumable Supplies

**Class VIII B**

**Classes of supply with** Whole blood/liquid.

**Class IX**

**Classes of supply with** Repair and parts components (less medical and dental) to include kits, assemblies and sub-assemblies, repairable and non-repairable, required for maintenance support of all equipment.

**Class X**

**Classes of supply** Materiel to support non-military programs

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what are the supply cycle?

* Requirement determination
* Procurement
* Storage and maintenance
* Distribution
* Disposal

__**SUPPLIES**__

**It** includes all kinds of property except real estate property which maybe needed in the transaction of official business or for public use in the nature of furniture, stationery, construction materials, livestock's and such other properties of similar nature of equipment for issue to troops, units and installations.

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Federal Stock Number

* an item of supply consists of the applicable 4-digit class code number from the Federal Supply Classification plus a sequentially assigned 7-digit Federal Item Identification Number. (11 digits).
* an 11-digit numeric code used to identify items contained within the Joint Army-Navy -Air Force Catalog System.
* was used from 1949 to 1974 when it was replaced by the National Stock Number. The conversion from FSN to NSN was typically done by adding "00" between the first set of numbers (the Federal Supply Class, or FSC) and the second set of numbers.

National Stock Numbers

Federal Stock Numbers was replaced by ___________ .

30 September 1974

When the Federal Stock Numbers was replaced?

National Stock Numbers

an expanded version of the older __Federal Stock Number__ (FSN), which lacked the national-origin code labeled.

11 digit

nr of digit of Federal Stock Number

13 digit

nr of digit of National Stock Numbers

Cataloging

an inventory control measure used to easily locate  and transfer stocks, as well as references for succeeding purchases.

**PURPOSE OF THE CATALOGING SYSTEM**

* Provide uniform system of identification.
* Eliminate different ID of like items.
* Reveal interchangeability and substitutability.
* Obtain accurate info about the characteristics of every item in the supply system. 
* Provide a tool for better analysis of mil/civ material requirements and expenditure. Provide a firm basis for standardization of items of supply.
* Provide mil activities and civil agencies max effectiveness in design, engineering, inter-service support, procurement, utilization of excess and/or savings from surplus and scarp sales.
* Provide the gov’t accounting and fiscal agencies uniformity in log reporting, budgeting, and accounting operations.
* Provide manufacturer less difficulty in the preparation of item description.

**ITEM IDENTIFICATION**

* it is the most important  element of the codification system because it establishes  a unique identification for every item of supply.


* Describes the physical and functional attributes of the item.”

four principal elements of data information

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1\. Item name

2\. Descriptive data

3\. Manufacturer Part number

4\. National Stock number

**Descriptive Method**

**E**stablishes and delimits the essential characteristics of an item of supply which give the item its unique character and serve to differentiate it from every other item.

**Item name**

Is the name approved under the Federal Cataloging Program for official use throughout the entire military defense systems. In other words, they use the same name for the same article.

**Descriptive data**

The complete description required to identify an item, then, consists of the item name followed by the descriptive information.

**IDENTIFICATION NUMBER**

Each item carried in  stock by one or more of the service supply system is identified by a 13 digit numerical National Stock Number.

***Identification List***

List of the characteristics and other identification data for items in the supply system. They give the NSN, description, manufacturer’s code, and other supply data. They are printed only on microfiche.

**Illustrated or Reference Drawing**

The illustration are more or less exact pictorial  representation of the items to which they apply, are designed to promote easy recognition and positive identification of cataloged items.

***Technical Manuals (TM)***

Technical publication concerning items of equipment purchased through  the normal procurement system.

***Reference List (RL) AFP Inventory***

Compilation of end items (no spare parts) adopted for use in the AFP.

***Master Cross Reference List (MCRL)***

A two-way cross-reference between the NSN of the item and the part number, catalog number, or the manufacturer’s code. It is printed only on microfiche.

***Repair Parts List***

Parts list breakdown with the related description concerning items of equipment with the corresponding National Stock Number.

**Federal Supply Classification Code**

It is the system that divides the different commodities, first into groups and then into classes. The first part of the National Stock Number.

**Federal Supply Group (first two digit)**

**Group 10 - Weapons**

**Group 13 - Ammunitions and Explosives**

**Group 28 - Engines, Turbines, and     Components**

**Group 51 -  Hand Tools**

***Group 53 - Hardware and Abrasives***

**Group 84 - Clothing and Individual     Equipment**

**•Federal Supply Group- 2 digits**

**•Federal Supply Class – 2 digits**

  ***Part  1***

**The 1st four (4) digit are Federal Supply Classification Code (FSCC) which relates the item to the group and class of similar items.**

**Part 2**

The next two (2) digits indicate the assigning __National Codification__ __Bureau Code (NCBC__). Each country has its own two digit NCB code.

00- 01

__National Codification__ __Bureau Code (NCBC__) of United States

46/PH

__National Codification__ __Bureau Code (NCBC__) of Philippines

__**Part 3**__

The final seven  (7) digits were assigned sequentially and had no inherent significances. However, this number relates to one and only one item of supply within the codifying country.

Codification (cataloging)

is a process, which examines an item, compares it with other items and allocates a NATO Stock Number to items with the same characteristics.

**What is the purpose of codification ?**

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* __**common supply language**__ 
* __**interoperability**__


* __**minimizing duplication**__

**Warehousing**

* The performance of physical functions covering receipt, storage, and issue of supplies.
* The process or act of positioning and placing items (cartons, packages, pallet unit loads, etc.) in area set aside for holding these items or staging these items for shipment.

**Storage**

Holding and keeping of supplies for future use, ready for issue at any given  time.

**SCOPE**

Includes preparing and planning for supplies that will arrive at the location in the future, the processing and handling of supplies to the customer.

**OBJECTIVES OF STORAGE AND WAREHOUSING**

**1.  Full utilization of space**

**2.Savings on time and labor**

3\.Supply readiness and accessibility

4\.Maximum protection

**Full utilization of space**

every available foot of storage space should be put to use  vertically and horizontally.

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**Savings on time and labor**

unexpected volume of shipments can be handled by a lean team of warehouse personnel at less operational time when supplies are stored properly and efficiently.

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Supply readiness and accessibility

supplies are stored in an efficient and proper manner for ease in selection and shipment with minimum amount of effort and cost involved. Each SKU location properly accessible.

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Maximum protection

  proper protection of supplies from pilferage, the elements, fire, extremes in temperature, odor and lights.

**BASIC RESOURCES in WAREHOUSING**

**I.   Space.**

**II.  Manpower.**

**III. Material Handling Equipment.**

**Space**

This pertains to the various types of areas or structures either covered or open-type utilized for the purpose of storing and protection of supplies.

**Manpower**

one of the primary resources of a supply installation. It is also the greatest item of expense. 

**Material Handling Equipment.**

defined as any stationary or mobile equipment, powered, mechanical, or hand operated, that is used for the physical handling, storage, and movement of supplies.

**What are the Classes of STORAGE?**

1\.FAST-MOVING

2\.SLOW-MOVING

3\.NON-MOVING or DORMANT

FAST-MOVING

Classified as stocks issued regularly and

expected to be used within a very short period due to its turnover. 

SLOW-MOVING

classified as stocks issued at intervals

Mostly monthly, quarterly or annually.

NON-MOVING or DORMANT

stocks classified as either for disposal or scrappage. 

**FUNCTIONS OF STORAGE**

* Receiving
* Storing
* Shipping

**Identifying**

To establish or verifying the exact or true identity of the materials e.g., type, NSN or other data concerning a supply item, during actual acceptance of certain product or component. 

**Inspecting**

the actual spot check of incoming shipment to ensure the contract requirements are met, without any damage to the item and that proper packaging and handling has been applied.  

**Classifying**

Evaluating or determining an item as to their physical condition and degree of serviceability through the use of condition codes.

**Storing**

 The taking of supplies to pre-determined locations  for storage using the  planograph and stock locator system.

Recieving

The function encompassing the physical receipt of material, the inspection of the incoming shipment for conformance with the purchase order (quantity and damage), the identification of the delivery, and the preparation of receiving reports.

**Preserving**

Applying protective measures including cleaning, drying, preservative “materials, barrier materials, cushioning, and containers when necessary.

**Inventory**

A physical count performed to determine the on hand quantity of an item or group of items.

**Shipping**

* The function that performs tasks for the outgoing shipment of parts, components, and products. It includes packaging, marking, weighing, and loading for shipment.


* The method of “picking” the required quantity of specific products for movement to a packaging area (usually in response to one or more shipping orders) and documenting that the material was moved from one location to shipping.

4 important techniques of good storage management

•  **planning**

•  **directing**

•  **coordinating and**

•  **Controlling**

**MANAGEMENT**

includes proper use of storage space and material handling equipment, proper grouping of activities for a straight line flow and the attaining of maximum productivity of all personnel

**Locator System**

Is an inventory-tracking system that allow you to assign locations to your inventory to facilitate greater tracking and the ability to store product randomly. 

**STOCK CARD**

A Form used in the Supply and/or Property Division/ unit for each type of supplies to record all receipts and issues made. It shall be maintained by fund cluster.

Storage Layout

Used as an excellent management tool for space control which enables planning for effective use of space.

STORAGE

The placing or keeping of item in an environment to prevent deterioration or damage and to facilitate handling in and out.

Two-way pallet

**A pallet constructed with stringers that do not have notches, so that fork tines can be inserted only from the two open ends.** 

Pallets

a portable, horizontal, rigid platform used as a base for assembling, storing, stacking, handling and transporting goods as a unit load, often equipped with a superstructure.