The document outlines the key steps in the stock handling process: (1) Receiving merchandise; (2) Checking quantities and quality; (3) Marking items with identifying information like price; and (4) Transferring items to selling locations. It describes common methods used such as blind checking, direct checking, and spot checking shipments against receiving records. Price marking typically involves applying UPC and price codes either by manufacturers or at retailers.

1. The Stock Handling Process

2. Vocabulary
 Receiving Record
 Blind Check Method
 Direct Check Method
 Spot Check Method
 Quality Check
 Source Marking
 Pre-retailing Marking
Methods

3. Stock Handling
 Manufacturers and suppliers receive parts or raw
materials for use in making finished products.
 These items must be tracked just as retailers
track the merchandise they receive.
 The steps in the stock handling process include:
1. Receiving Merchandise
2. Checking Merchandise
3. Marking the Goods with Information
4. Delivering them to their Selling Location

4. 1. Receiving Merchandise
 Merchandise ordered by a
store is received, checked,
and marked with a selling
price before it is transferred
to the sales area.
 The area where deliveries
are made by carriers is
called a dock, and is large
enough to accommodate the
shipments a business
normally receives.

5. Receiving Records
 A receiving record is a form that
describes the goods received by a
business.
 Some businesses use a short type of
receiving record called an apron, a
form attached to the invoice before the
merchandise moves through checking
and marking.

6. 2. Checking Merchandise
 Merchandise must be checked to verify quantity
and condition once it is received.
 In some businesses employees called receivers
inspect and record newly arrived merchandise.
 The four methods often used to check merchandise
are:
1. Blind Check
2. Direct Check
3. Spot Check
4. Quality Check

7. – Blind Check Method The receiver writes
the description of the merchandise and
quantities received on a dummy invoice,
then compares it to the actual invoice. It is
accurate, but time consuming.
– Direct Check Method Merchandise is
checked directly against the actual invoice
or purchase order. This is faster but errors
may not be found if the invoice itself is
incorrect. Some receivers estimate counts,
rather than actually counting every box.

8. • Spot Check Method A random check of
one carton in a shipment. If the contents
are as stated on the invoice, the remaining
cartons are assumed to be the same. Often
used for canned goods and paper products.
• Quality Check Method A check to
determine if the quality of the goods
received matches the quality of the
products ordered. This type of check is
often done by the buyer.

9. Returning Merchandise
 There are several reasons a business
might return merchandise to a
manufacturer:
 incorrect items were sent
 items were damaged
 items received were not ordered
 order was cancelled after it was shipped
 When merchandise is returned, the seller
issues a credit memorandum that notifies
the buyer that the buyer's account has
been credited.

10. 3. Marking Merchandise
 After it has been received and
checked, merchandise must be
marked with the selling price and
other information.
 The most common method of
marking price is with a
Universal Product Code
(UPC), a group of parallel
vertical bars and a row of
numbers on a label.

11.  With source marking the UPC and price is marked by
the manufacturer before the product is sent to the
retailer.
 With the preretailing marking method, pricing
information is marked on the purchase order and
merchandise can be priced as soon as it arrives.
 Merchandise can be marked with manual pricing
machines or with price tickets.
 Price Ticket Information Price marking on the price
ticket identifies the price, but the ticket can also include
the store number, model or style number, color, sizes,
fabrics.

12. 4. Transferring Merchandise
 Once merchandise is received, checked,
and marked, it is ready to be moved to the
sales area. Stock is generally transferred
to and from a warehouse at the beginning
of each season.
 Transferred merchandise is accompanied
by a form describing the items, style
numbers, colors, sizes, cost, and retail
prices.