I don’t understand this very well. We talk about this tomorrow.
At TNS, they create Uniform Purchase Plan at beginning of each year. They control the following items. Please see the attached file.
1. Beginning Balance
2. Ending Balance (This comes from the idea “How much do we need as for stock at the end of year)
3. Usage (This comes from Head Count Plan)
4. Purchasing size (This is calculated automatically based upon the above information)
Now, you may know this is exactly the same as Stock Control for buying raw material.
Please ask yourself of the above questions of 1, 2 and 3. Then, you can have answer for question 4 very easily.
At TNT, I want to do the same way as TNS. I still don’t understand why cost of 2016 is much higher than cost of 2015. Head count is almost the same. Are we buying more for stock?
Expense for uniform is very big. We need to understand this well enough.