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I. OBJECTIVE
1. To provide guidelines on the proper distribution of charges for expired items
II. DEFINITION OF TERMS
1. FIFO – “First In, First Out”; the rule which is governed by the idea that in inventory, the batch that is acquired first must be released or used first
2. Near-expiry items – items that will expire within a month
3. Push (of product) – a strategy in which the outlet personnel must aggressively offer the product to the customers to make a sale
III. GENERAL POLICIES
All outlet personnel must observe the FIFO system in their product inventory to keep the freshness of the products served to the customers. Aside from that, it is the responsibility of the Supervisor and Team Leader to monitor the proper inventory of items as well as the selling of products to achieve the maximum sales of the outlet.
However, during instances when there are near-expiry items, it is expected that effective strategies be executed to sell the items before expiration. Supervisor, Team Leader and Service Crews must work together to find the best solution to push the products and turn them to sales.
“When a product lapses as FIFO is not implemented or not pushed” is one of the grounds for ATD. Below is the proper distribution of ATD to the personnel accountable.
x = y / (2+n) or 2x + (n)x = y
• y = total amount of ATD
• n = number of accountable Service Crew/s
• x = amount to be charged to accountable Service Crew/s
• 2x = amount to be charged to accountable Team Leader/ Supervisor
Example:
An outlet has expired items amounting to P200.00 due to failure in implementing the FIFO system. The outlet has 3 shifting Service Crews.
y = P200.00
n = 3
x = ?
To find x:
x = y / (2+n)
x = 200 / (2+3)
x = 200 / 5
x = 40 -> Each service crew shall be charged P40.00
To calculate the amount of ATD to the Team Leader/ Supervisor:
2x -> 2(40) = 80 -> Team Leader or Supervisor shall be charged P80.00
To check:
P40.00 x 3 SCs = P120.00
P120.00 + P80.00 = P200.00 -> Total amount to ATD
IV. PROCEDURE FLOWCHART
Flowchart Title
(Not Applicable)
V. REFERENCE/INTERFACE PROCESS
Document Title
1. Authority to Deduct
VI. FORMS AND RECORDS
Form Title
1. Authority To Deduct Slip
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