Both the stock points and NAVICP perform inventory control tasks, but only stock points actually maintain an inventory. IMs at the NAVICP are responsible for procurement of specific items and positioning of these items in stock points to satisfy worldwide demand. The IM centrally manages these items for the customers. The managers in the stock points are responsible for local inventory management to support local demands. The NAVSUP designates ashore Navy stocking activities (stock points) after coordination with affected commands and activities that receive support. The fleet commanders and type commanders designate afloat stocking activities. The NAVICP provides the authorized allowance for repair parts and equipage requirements to ships, squadrons, or shore activities, Repair parts that are needed to support aviation weapons systems are listed in the activity’s Aviation Consolidated Allowance List (AVCAL) or Shorebased Consolidated Allowance List (SHORCAL). As a senior AK, you are responsible for ensuring that the items in stock are properly managed. DEFINITIONS Some of the common terms used in inventory management are described in the following paragraphs. You should familiarize yourself with these terms. . Bouncebacks—The procedure used when the stock point is notable to fill the requirement referred by the item manager. l Classified items—Materials that require protection in the interest of national security, Refer to the Department of the Navy information and Personnel Security Program Regulation, OPNAVINST 5510.1. l Consumer level of inventory-An inventory, regardless of funding source and usually of limited range and depth, held for the sole purpose of internal consumption. . Controlled inventory items—Material having characteristics that require special accounting, security, or handling. These materials are categorized as classified and sensitive items. . Intermediate level of inventory-An inventory, regardless of funding source, that is required between the consumer and wholeale levels of inventory. Its purpose is to support a defined geographic area. Intermediate level of inventory may also be held for tailored support of specific consumer organizations or activities. l Operating site-Any activity, either afloat or ashore, authorized to stock in a retail-level (consumer or intermediate) inventory. . Pilferable items—Materials having a ready resale value or application for personal use and, therefore, subject to theft. . Retail inventory-Materials held below the wholesale level in either consumer or intermediate inventories. l Retail inventory stocking activity-Any activity authorized to stock items in retail-level inventory. l Sensitive items-Materials that require a high degree of protection and control. Some examples of these items are narcotics, precious metals, ammunitions, explosives, and so forth. . Wholesale inventory—Materials under the control of an inventory manager that are required to meet worldwide inventory requirements. MATERIAL MANAGEMENT FUNCTIONS Effective inventory management depends upon personal involvement by supply managers and supervisors in performing supply functions. Several material management functions performed in different areas in supply directly affect inventory. These include the following functions: l l l l l Allowance list maintenance Issue processing Receipt processing Physical inventory count and reconciliation Stock record maintenance FILES Several files are used in inventory management. Some of these files areas follows: . Material files-Those files maintained to manage items in stock or to record demand data. Under the Supply Uniform Automated Data Processing System-Real Time (SUADPS-RT), the primary material file is the Basic Material File (BMF). 5-2