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 rTjard Unlvers:' ty . Oraduste school 
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 UNIVERSITY OF CALIFORNIA 
 
 AT LOS ANGELES
 
 PUBLICATION OF THE GRADUATE SCHOOL OF 
 BUSINESS ADMINISTRATION, HARVARD UNIVERSITY 
 
 VOL. II, NO. 4 CAMBRIDGE, MASS. AUGUST, 1916 
 
 BULLETIN NO. 7 
 BUREAU OF BUSINESS RESEARCH 
 
 HARVARD SYSTEM OF STOCK 
 
 KEEPING FOR SHOE 
 
 RETAILERS 
 
 <7\ AT iU33 AWCZLEO 
 
 FEB 1 L :044 
 
 B R A R V 
 
 rilICB .<i9 ^5BNTS 
 
 CAMBRIDGE 
 
 HARVARD UNIVERSITY PRESS 
 
 1916 
 
 W-
 
 BULLETINS OF THE BUREAU OF BUSINESS RESEARCH 
 
 Bulletin No. 1. Object and History of the Bureau With Some Pre- 
 liminary Figures on the Retailing of Shoes 
 
 Bulletin No. 2. Harvard System of Accoimts for Shoe Retailers, Expla- 
 nation of the Profit and Loss Statement 
 
 Price 50 cents 
 Bulletin No. 3. Harvard System of Accoimts for Retail Grocers, Expla- 
 nation of the Profit and Loss Statement 
 
 Price 60 cents 
 
 Bulletin No. 4. Depreciation in the Retail Shoe Business 
 
 Price 50 cents 
 
 Bulletin No. 6. Expenses in Operating Retail Grocery Stores 
 
 Bulletin No. 6. Harvard System of Accounts for Shoe Wholesalers, 
 Explanation of the Profit and Loss Statement 
 
 Price 50 cents 
 
 Bulletin No. 7. Harvard System of Stock-keeping for Shoe Retailers 
 
 Price 50 cents 
 
 The Bureau's Bulletins are given without charge to those who cooperate 
 
 with the Bureau by supplying specific information 
 
 from their own businesses.
 
 BULLETIN NO. 7 
 BUREAU OF BUSINESS RESEARCH 
 
 HARVARD SYSTEM OF STOCK 
 
 KEEPING FOR SHOE 
 
 RETAILERS 
 
 CAMBRIDGE 
 
 HARVARD UNIVERSITY PRESS 
 
 1916
 
 COPYRIGHT, 1916 
 HABVARD UNIVERSITY PRESS
 
 
 CONTENTS 
 
 PAGE 
 
 Introduction 5 
 
 Explanation op the Harvard System of Stock-keeping 
 
 FOR Shoe Retailers 11 
 
 Sales Summary Sheet 12 
 
 Size-up Sheet 15 
 
 Consolidation Sheet 19 
 
 Order Record 19 
 
 Record of Receipts 23 
 
 Stock Record 26 
 
 45G774
 
 HARVARD SYSTEM OF STOCK-KEEPING 
 FOR SHOE RETAILERS 
 
 This bulletin provides a system of stock-keeping for shoe 
 retailers. Its object is to enable shoe retailers to increase the 
 rapidity of their stock-turn and to reduce losses from deprecia- 
 tion. This system is based upon the most modern methods 
 of stock-keeping and embodies the best practice found by the 
 Bureau in the retail shoe trade. Actual tests have shown that 
 it is applicable to a shoe business of any size or grade. 
 
 In the retail shoe business, as in other retail businesses, a 
 high annual stock-turn generally results in good profits and a 
 low stock-turn frequently causes loss. In the figures collected 
 by the Bureau from shoe retailers, which were summarized in 
 Bulletin No. 1, stock-turn has been found to range from 1.0 
 to 3.6 times a year. The common figure is 1.8, but enough 
 stores are turning their stock 2.5 times a year to indicate that 
 the latter figure is one which can readily be attained by all 
 retailers using proper stock-keeping methods. A high stock- 
 turn is especially important in retail shoe stores for reducing 
 loss from depreciation — a subject discussed at length in 
 Bulletin No. 4, '* Depreciation in the Retail Shoe Business." 
 
 The importance of a proper stock-keeping system arises 
 from a few obvious facts — so obvious sometimes that the 
 dealer fails to realize what bearing they have on the manage- 
 ment and profits of his business. The demand upon a shoe 
 retailer's stock is complicated by the diversity of sizes and 
 widths and of grades and styles. The development of rights 
 and lefts, different sizes, and varying widths has been due to 
 natural causes. Fashion has caused still further diversifica-
 
 tion ami has led to a domaiul for rapidly chanjiing styles, 
 especially in women's shoes. An unworn, perfectly titting 
 shoe, for whirh the style has passed, becomes less valuable 
 because less fashionable. These increasinf>; complications in 
 the shoe business make the wants of the consumer more in- 
 dividual and more highly specialized and require for the satis- 
 faction of the sajne group of customers a great variety of 
 merchandise. For the retailer this usually means an increased 
 stock, with fewer stock-turns, an increased interest charge, 
 and increased cost of depreciation. Such undesirable develop- 
 ments may be to some degree avoided by unu^sual vigilance in 
 adjusting the stock to the varying wants of the customers. 
 Not only must the dealer have what the customer wants, but 
 because of the high average unit of value ^ he cannot afford to 
 carry what no customer demands. " Left-overs " and " end- 
 sizes " 2 absorb profits rapidly as an example typical of the 
 retail shoe business shows: 
 
 60 pairs of shoes bought at $2.75 a pair $165 
 
 sold at $4 a pair 240 
 
 Profit $75 31i% 
 
 Operating expense 25 % 
 
 Net profit 6|% 
 
 Though these figures are seemingly satisfactory, they accord 
 with facts only when all the shoes are sold at the original 
 mark-up. What generally happens is something like the 
 following : 
 
 ^ It is estimated that the average unit of sale in the retail drug busi- 
 ness is 15-20 cents; in the retail grocery business it is probably not 
 much greater; whereas, in the typical retail shoe store selhng the ordi- 
 nary amount of findings it is probably not far from $1.25-$1.50, and if 
 shoes alone were handled would of course be still higher. 
 
 * Those sizes near the ends of a " run of sizes " (a common " run " in 
 men's is from sizes 5 to 11) are the " end-sizes." Of course these are 
 bought in much smaller quantities than the midway sizes, 7 to 9, but 
 even' then are likely to be overbought. On the other hand, if buying is 
 too close, there is the risk of not having a customer's size.
 
 60 pairs of shoes bought at $2.75 a pair $165 
 
 45 pairs of shoes sold at $4 a pair $180 
 
 15 pairs of shoes markied down to $3 45 225 
 
 Profit $60 26 
 
 Operating expense 25 
 
 Net profit 
 
 1§% 
 
 Three-fourths of the ijet profit has been lost in mark-downs 
 due to " left-overs," " end-sizes,'- and style change. Such 
 losses can be reduced by the use of an efficient stock-keeping 
 system. Fortunately the high average unit of value permits 
 an expense of recording which a smaller unit could not bear. 
 A unit of $3 to $5 or more warrants a stock-keeping expense 
 that one of 25 or 50 cents would not permit. 
 
 To aid in more accurate buying, an extensive use of aver- 
 ages has been made. Shoe manufacturers and wholesalers 
 have prepared charts and '' runs of sizes," based on their own 
 experience, to guide the retailer in ordering. One unportant 
 manufacturing company has prepared charts for men's shoes 
 and for women's shoes, based on the sales of two million pairs 
 in the United States. One of these charts is substantially 
 as follows : 
 
 Width 
 
 4 
 
 4i 
 
 5 
 
 5J 6 
 
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 7 
 
 71 8 
 
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 This is the chart for men's narrow toe shoes; there are three 
 other charts — for men's broad toes, women's narrow toes, 
 and women's broad toes. In each chart the area indicated by 
 (1) represents 80% of the total sales in the ordinary store;
 
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 area (2) roiMoscnts 16 ^ , area (3) 3 %, and area (4) 1 % of the 
 &iles. The shape and <he size of the areas differ on different 
 charts. For example, in tlie charts for women's shoes the 
 area marked (1) extends between 3 B-E, and G^- A-E. There 
 arc also differences in the other areas but the above chart 
 shows the general plan. These charts show that a retailer 
 should buy with great caution sizes and widths outside the 
 central sjiace, area (1), and that even more caution should be 
 exercised in buying in areas (3) and (4) than in area (2). 
 
 Another large manufacturing company has decided that no 
 one general chart can be used for the United States, but that 
 for each sex there should be at least three, each determined 
 for a geographic location. This company advocates one chart 
 for the southeast, one for the region west of the Mississippi, 
 and one for the northeast. In its own investigations the 
 Bureau has found great differences in the character of the 
 demand within a single city. A shoe store located in the 
 manufacturing district of a large city, where many foreigners 
 are employed, cannot use the same chart as a store in a 
 wealthy residential district. 
 
 Wholesalers supply standard " runs of sizes " to shoe re- 
 tailers of which the four following may be taken as typical : 
 
 Men's 5 5i 6i 7 7} 8 8J 9 9} 10 lOJ H 
 
 5-11 1111111111 1 1 1 
 
 5-8 1 1 2 2 2 2 2 
 
 (Twelve more " runs " range from 5-10 to 8-11) 
 
 Women's 2J 3 31 4 4§ 5 5J 6 6J 7 7i 8 
 
 2|-8 111112 1111 1 
 
 3-6 12 2 2 2 2 1 
 
 (Sixteen more " runs " range from 21-7 to 5-7) 
 
 Similar "runs" are provided for "Boys'," "Youths'," " Little 
 Boys'," "Women's Low Heels," "Misses'," "Children's" and 
 " Infants'." The examples given mean that for each dozen 
 pairs ordered on a width, or not to run narrower than a cer- 
 tain width, the sizes shall be distributed as indicated, that is,
 
 f or a " run " of men's sizes between 5 and 8 for each dozen 
 pairs there shall be but one pair 5's and one pair 5|'s and two 
 pairs each of the remaining sizes. 
 
 There can be no question as to the service rendered to all 
 members of the shoe trade by these charts based on general 
 averages. At the same time they are undoubtedly of more 
 service to the manufacturer or wholesaler who sells to a 
 number of communities than to the retailer who sells in a 
 single community. There are wide local variations in the 
 demand for sizes and widths. As in qualities, this depends 
 upon geographic location and upon the class of customers. 
 The Bureau has cooperators in the retail shoe trade who sel- 
 dom order a width narrower than a D, and it has others whose 
 business would suffer had they not a hberal sprinkling of A's. 
 The Bureau has charts of best sellers, constructed by a 
 Chicago retailer for men's and women's shoes, which differ 
 considerably from those referred to on pages 7 and 8. 
 
 It appears, therefore, that each shoe store has to determine 
 its own selection of the styles, sizes, widths, and grades suited 
 to its needs. In this it is aided in great measure by records 
 of its own experience. Although experiments will still have 
 to be made and risks taken if the business is to progress, as 
 much risk as possible should be eluiiinated. Toward this end, 
 among the most enlightened and successful shoe retailers, 
 there is an increasing use of stock-keeping systems. These 
 systems vary greatly in convenience and usefulness but prob- 
 ably any of them, if kept up faithfully, is much better than 
 none. Even with the best system is use, there nuist remain 
 some element of risk. The Bureau has cooperators with 
 excellent stock-keeping systems who, even with frequent re- 
 visions of their own summaries, have occasionally met some 
 unforeseen changes in the demand for sizes and widths as well 
 as in styles. Nevertheless, without their systems they state 
 that they would feel comparatively helpless and have a de- 
 cidedly greater element of risk in their business. In ordering,
 
 10 
 
 i< is cortainly much safer to confine guess-work to 10, 20, 
 or even 30<;; of the sales than to "estimate" the cominp; 
 business as a whole from unrecorded experience. 
 
 The Harvard System of Stock-keeping for Shoe Retailers, 
 provides forms for recording experience, in order to keep the 
 stock " clean," free from " end-sizes " and " left-overs." 
 This system is the result of a careful study of stock-keeping 
 methods in retail shoe stores and in other businesses. Based 
 on practice, it has been thoroughly tested and found appli- 
 cable to shoe businesses lai'ge and small, general and special- 
 ized, with popular prices and with high prices. The general 
 plan and sjiacings of these sheets have been carefully tested 
 by a special inquirj^ into the experience of over one hundred 
 of the Bureau's cooperators, selected to represent various 
 kinds and sizes of shoe businesses in difTerent sections of the 
 United States and Canada. 
 
 As a preliminary to the detailed explanation of the stock- 
 keeping system a few definitions are needed. Such words as 
 " last," " line," " style," " grade," have repeatedly been 
 found by the Bureau to be used in different senses, dependent 
 upon whether the speaker is a retailer, a traveler, a manu- 
 facturer, or a wholesaler. For its own purposes the Bureau 
 has found it necessary to standardize definitions for a few of 
 these words, and in doing so has naturally endeavored to 
 follow what it believes the best practice. Some of these 
 definitions are: 
 
 Grade is determined by the retail selling price. 
 
 Kind indicates the sex and age, that is, men's, women's, 
 youths', misses', boys', children's, and infants' shoes. 
 
 Last is the form or pattern on which the shoe is built and 
 may be the basis of several styles (see Line and 
 Style). 
 
 Line is a term which is loosely used, with so many vary- 
 ing meanings that it cannot be precisely defined. 
 Perhaps most frequently a " line " contains only 
 one grade, but it may contain more. Examples are : 
 Four dollar men's Oxfords; three dollar women's
 
 11 
 
 high; also a " hne " of men's Oxford tans with rang- 
 ing grades. The term is also sometimes confused 
 with "make " (see Make). 
 
 Make is the name of the manufacturer — with the loca- 
 tion of the factory, if there is more than one. 
 
 Size is length, indicated by figures. 
 
 Stock Number designates all those shoes which differ only 
 in size and width, and have all other characteristics 
 in common. Stock number and style (see Style) 
 are frequently synonymous but not necessarily, for 
 example, a slight difference in the stitching or lace 
 eyelets and catches might warrant a different stock 
 number on really the same style. It is always safe 
 to refer to a style as covering at least one stock num- 
 ber but not vice versa. Style is more inclusive. Even 
 though stock numbers are changed, while a " stock 
 number " stands it is more specific than " style." 
 
 Style is the cut (following broad lines and not noting 
 extreme refinements — see Stock Number), the 
 color, and the material. Examples are: Oxford, 
 Balmoral, Blucher, button, black, tan, patent, cloth- 
 top. 
 
 Width is breadth, usually expressed in letters. The 
 Bureau always expresses it in this way. 
 
 Explanation of the 
 Hakvard System of Stock-keeping for Shoe Retailers 
 
 The Harvard System of Stock-keeping for Shoe Retailers 
 records, in logical and compact form, size-ups and orders by 
 styles, sizes, and widths, and receipts and sales by styles, so 
 that the proprietor or manager can tell at any time the condi- 
 tion of his stock — what portions are moving and what are 
 not moving. The system comprises the following forms: 
 
 Sales Summary Sheet (Form 7a). 
 Size-up Sheet (Form 7b). 
 Consolidation Sheet (Form 7c). 
 containing — Order Record. 
 
 Record of Receipts. 
 
 Stock Record.
 
 12 
 
 Samples of those forms aeeompany this biilh'tin. Additional 
 copies nmy be obtiiineil at cost from the liureau. 
 
 On the Sales Summary Sheet (Form 7a) by means of a 
 daily tally, a record by stock iiuin])ers is kept of the number 
 of pairs of shoes sold and the number of pairs returned. One 
 sheet has space for recording, without reference to size and 
 width, the sales and returns of each of one hundred stock 
 numbers for four weeks. This record shows how rapidly each 
 style is being sold. On the Size-up Sheet (Form 7b) the 
 number of pairs of each size and width on hand is entered for 
 each stock number — one sheet for each stock number. 
 Spaces are also provided on the Size-up Sheet for number of 
 pairs on order and number of pairs due for each size and 
 width. The number of pairs on hand is determined by actual 
 count; the figures for the number of pairs on order and for the 
 number of pairs due are obtained from the Order Record. 
 The Consolidation Sheet (Form 7c) consists of three parts — 
 Order Record, Record of Receipts, and a summary Stock 
 Record. One sheet is used for a single stock number. On the 
 Order Record is entered the number of pairs of each size and 
 width to be ordered, as determined for each order by reference 
 to the Sales Summary Sheet and the Size-up Sheet. The 
 Record of Receipts is filled out from order blanks and invoices 
 of goods purchased. The Stock Record on the same sheet 
 provides a monthly summary of goods received, sales, and 
 returns. 
 
 The detailed explanation of this stock-keeping system 
 should begin with the Sales Summary Sheet (Form 7a) — the 
 first of the three sheets referred to above. A portion of the 
 Sales Summary Sheet is shown on the opposite page for pur- 
 poses of illustration. Each Sales Summary Sheet shows at a 
 glance the best selling and the poorest selling stock numbers. 
 On it are recorded the sales and returns of 100 stock numbers 
 for-four weeks, with daily entries and weekly totals. On each 
 side of the heavy double line in the centre of the sheet spaces
 
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 :uv proviiKnl for "H) slock iiuiubers — one stock number to a 
 lino. In the column at the extreme left, headed " Stock 
 Number," the stock numbers are entered, one stock number 
 on each line. In the weekly divisions, four in number, the 
 records of sales and i(>turns of these stock numbers are 
 kept. 
 
 Each weekly space, headed " Week Ending ," is 
 
 divided into four columns. The first two of these columns are 
 for " Sales " and the last two colunms are for " Returns." 
 In the first of the " Sales " columns, headed " Tally," sales 
 of the corresponding stock number are tallied 4nTl^ daily. 
 To tally, a vertical mark is drawn for each pair of shoes up to 
 four, as follows I | | | , and for the fifth pair sold a cross mark 
 is drawn diagonally through the four vertical marks, thus 
 JJ-rT'. This tally is repeated for each five pairs sold. At 
 the end of each week the tallies for the week are counted and 
 the total sales for that stock number for that week are entered 
 in the second sales column, headed " Total." 
 
 There are two columns for " Returns " in each weekly divi- 
 sion of the Sales Summary Sheet. " Returns," as here used, 
 means unworn shoes which are returned and which can again 
 be placed in the stock for sale. In the first of the " Returns " 
 columns, headed " Tally," the number of pairs of shoes re- 
 turned are talhed for each stock number in the same manner 
 as sales. In the second " Returns " column, headed " Total," 
 the totals of the tallies of returns of the respective stock 
 numbers for the week are entered. Each weekly section is 
 used in the same way. At the end of each week the figure for 
 "■ Total Sales " for the week as recorded on the Sales Sum- 
 mary Sheet is entered also on the Stock Record of the Con- 
 soHdation Sheet (Form 7c) bearing the same stock number. 
 At the end of each month, the total number of pairs of shoes 
 of each stock number returned during the month is deter-
 
 15 
 
 mined from the record on the Sales Summary Sheet and 
 entered upon the Stock Record of the ConsoUdation Sheet. 
 
 It may be asked why the Sales Summary Sheet was not 
 constructed for months instead of for four-week periods so 
 that it would compare exactly with this monthly Stock 
 Record. It was purposely decided not to construct it so, 
 for no broken weeks were wanted on the Sales Summary 
 Sheet. Since the entries on it are daily, the broken weeks of 
 the Stock Record can be readily supphed by counting the 
 talhes up to and including the last day of the month, no 
 matter when in the week that day comes. Under this method 
 the Stock Record by whole months is supphed and the totals 
 of the Sales Summary Sheet for whole weeks are not dis- 
 turbed. 
 
 The stock numbers at the left on the Sales Summary Sheet 
 may be entered in advance or only as sold, depending on the 
 nature of the individual shoe business. If the business carries 
 a comparatively few (20-30) active stock numbers, it may be 
 easier to have them all entered in advance in the order that 
 has become customary. If the business has many stock 
 numbers of varying activity, it may be easier to enter num- 
 bers as sold letting the order of their sale determine their 
 places on each sheet. Each retailer can decide for himself 
 which method he prefers. It is advisable to keep separate 
 the sales of men's, women's, and others, whether in separate 
 groups on the same sheet or on separate sheets. One sheet at 
 a time will be more than sufficient for many shoe stores. 
 Two sheets will be ample for the great majority of shoe stores. 
 Tests have shown that not more than ten minutes a day on 
 the average should be required to keep this sheet for retail 
 shoe stores with yearly sales not exceeding $50,000. The 
 time required for larger businesses will increase in approxi- 
 mate proportion. 
 
 The next form of the Harvard System of Stock-keeping for 
 Shoe Retailers is the Size-up Sheet (Form 71)). From its
 
 16 
 
 investigations (he Huicau has concluded that only an ex- 
 tremely small fraction (probably less than 5 ';<) of the retailers 
 employing a continuous inventory depend wholly upon it for 
 the ordering of sizes and widths. By far the greater portion 
 rely instead on a "size-up" — an actual physical count of 
 sizes antl widths on hand. In this conclusion, the Bureau is 
 supported by the observations of manufacturers and whole- 
 sal(M-s who have been j^articularly interested in this matter. 
 
 Theoretically, it should l)e possible and it would seem 
 desirable to have a stock-keeping system so detailed and so 
 accuiately kept that orders might be determined not only by 
 mmiber but also by size and width without the aid of a size- 
 up. In practice, however, it appears that, owing to careless- 
 ness, rush hours, and part-time salespersons, incorrect memo- 
 randa creep into the sales slips and affect the accuracy of stock 
 records made up from them. An error or two of this kind, 
 owing to the high average unit of value of shoes already re- 
 ferred to (pages 6 and 7), will counterbalance the expense of 
 taking a size-up which shows exactly what is on hand. The 
 Bureau believes, however, that this difficulty can be over- 
 come to a large extent through a system of bonuses for 
 errorless days for salespersons (see page 36). Another ob- 
 jection to a system which records sales by styles and widths 
 is weightier; it makes the system unwieldy. The omission 
 of such a record does not impair the chief usefulness of the 
 system. The main service of a shoe stock-keeping system is 
 to show what numbers and styles ^ are moving and especially 
 to show the tendency of the movement to increase or de- 
 crease. A record of styles as sold in the order of their impor- 
 tance rather than of sizes and widths sold is the central idea of a 
 stock-keeping system. The size-up, sure to be taken, will 
 show sizes and widths on hand. A comparison of this with 
 previous on hands and receipts furnishes the sales by sizes 
 
 * These are frequently coincident but not always — see definition of 
 Stock Number, p. 11.
 
 17 
 
 and widths with accuracy. Accordingly the Bureau soon 
 reached the decision that it would be impracticable to aban- 
 don the size-up and that any stock-keeping system which 
 attempted to reckon without it would be cumbersome and 
 not materially improved. Consequently, the size-up was 
 accepted as a fact and it has been incorporated as an integral 
 part of the Harvard System of Stock-keeping for Shoe 
 Retailers. The second sheet (Form 7b), which appears on 
 the following page, is the Size-up Sheet. 
 
 The ordinary size-up sheet, so well known to the shoe trade, 
 consists simply of squares as follows, dashes usually being em- 
 ployed to represent the half sizes; for example, 5, — , 6 means 
 5, 5i 6: 
 
 
 5 
 
 — 
 
 6 
 
 — 
 
 7 
 
 — 
 
 8 
 
 — 
 
 9 
 
 — 10 — 
 
 AA 
 
 
 
 
 
 
 
 
 
 
 1 
 
 A 
 
 
 
 
 
 
 
 
 
 
 
 
 B 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 D 
 
 
 
 
 
 
 
 
 
 
 
 E 
 
 
 
 
 
 
 
 
 
 
 
 EE 
 
 
 
 
 
 
 
 
 
 The Bureau's Size-up Sheet (Form 7b) , a copy of which is 
 reproduced on the following page, does not differ from this 
 except that each square has three divisions. If only the 
 upper spaces, marked 1 in the key, 
 are used, this Size-up Sheet does not 
 differ from an ordinary size-up sheet 
 — the number of pairs of each size 
 and width on hand as determined by 
 actual count is entered in its proper space. The use of the 
 additional spaces is optional. If used, space 2 can be em- 
 ployed to show the number of pairs on order, that is, the pairs 
 ordered but not yet received of that particular size and 
 
 " SIZE-UP SHEET 
 
 Key 
 
 1. On hand. 
 
 2. On order. 
 
 3. Due.
 
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 19 
 
 width. This figure, as well as that for pairs due, is taken 
 from the Order Record, to be described later. Space 3 can be 
 used to show pairs due, or pairs transferred from another stock 
 number, or for other data as desired . 
 
 The Size-up Sheet is constructed so as to bring together in 
 a useful place important facts about a single stock number. 
 To avoid duplication of work, as soon as the size-up is taken, 
 the Size-up Sheet should be attached with cHps to the Con- 
 soUdation Sheet (Form 7c) having the same stock number. 
 There it remains until the next size-up on that particular 
 stock number is taken, when it is to be removed, destroyed or 
 filed, and the new Size-up Sheet substituted for it. The latest 
 Size-up Sheet is thus always attached to the Consohdation 
 Sheet for the corresponding stock number, so that from it 
 may be seen at a glance all the essential facts in the history 
 of that style up to the time of the last size-up. In order to 
 learn whether or not stock is accumulating, the figures on the 
 last Size-up Sheet should always be compared with those on 
 the Size-up Sheet which is removed. These facts guide the 
 retailer in determining new orders to be given. 
 
 The Consolidation Sheet (Form 7c), as its name indicates, 
 consoHdates three records — orders, receipts, and stock. Like 
 the Size-up Sheet, the Consolidation Sheet relates to one 
 stock number only, as indicated in the upper right-hand 
 corner. At the top is also given a full description of the shoe 
 corresponding to the stock number, together with its make, 
 selling price, billed cost, profit, and discount. The Order 
 Record, which is the first part of the Consolidation Sheet to 
 be used, provides spaces for recording by pairs as many as 
 sixteen separate orders for each style and width ^ as deter- 
 
 ^ Only the widths are printed on the blank form, the top spaces for 
 sizes as in the Size-up Sheet being left for insertion by the user accord- 
 ing to the nature of the shoe, whether men's, women's, children's, and 
 according to whether there is an extended or concentrated range of 
 sizes. To provide printed sizes for all these conditions would make the 
 sheet much longer and hence more cumbersome and leave much waste
 
 20 
 
 
 
 
 
 
 
 
 
 
 
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 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 16 
 
 16 
 
 I 
 
 II 
 
 III 
 
 IV 
 
 mined from the Size-up Sheet and Sales Summary Sheet. 
 A section of the Order Record is shown on the opposite page. 
 The orders are recorded in the squares as indicated in the 
 key, the spaces corresponding to the first, second, third, 
 
 CONSOLIDATION SHEET 
 Key 
 1-16. Orders. 
 
 I. On hand at beginning. 
 II. Total bought. 
 
 III. On hand at end. 
 
 IV. Sales. 
 
 fourth orders respectively, and so on for the whole sixteen, 
 if used. 
 
 Note carefully that this Order Record is the basis from 
 which order blanks are filled and given to the manufacturer 
 or wholesaler. The entiies on the Order Record are deter- 
 mined from a study of the Size-up Sheet, the Sales Summary 
 Sheet, and the Stock Record. These entries are made to 
 guide the retailer in giving his orders. Consequently, the 
 Order Record is not to be filled from order blanks but order 
 blanks are to be filled from it. As an order blank is filled 
 from the Order Record it will be well to 
 avoid future confusion by putting a circle 
 or parenthesis around each entry as soon 
 as the order has been sent in and to cross 
 the spaces not used. In the example 
 given here it would be clear that the pairs 
 decided upon at the first and third orders had been ordered 
 from spaces 1 and 3, that none of that size and width was 
 
 space. After dihgent inquiry sixteen was selected for the number of 
 spaces as an outside figure to cover the orders given in a year on any 
 stock number. When, under exceptional conditions, it should be ex- 
 ceeded, a second Consolidation Sheet can be started for that particular 
 stock number and attached to the first. Many shoe retailers, however, 
 will not require half of these spaces. 
 
 (5) 
 
 X 
 
 (1) 
 
 
 
 
 
 
 
 
 
 
 

 
 22 
 
 needed on tlu> second onl(>r, eonscquently space 2 was crossed 
 hecjuise not us(>d, and lliat ilic next order wonld he from 
 space 4. 
 
 The spaces in the lowest row in each section furnish im- 
 portant summary fifi;ures for each size and width of that 
 particular stock num])er and are to be filled out as follows: 
 
 I. Number of pairs on hand at beginning of year. 
 
 II. Number of pairs bought. 
 
 III. Number of pairs on hand at end of year. 
 
 IV. Sales. 
 
 The first space (I) is for the number of pairs on hand at the 
 beginning of the fiscal j'ear at inventory. It may be well 
 to enter this in red. If the sj^stem is installed between in- 
 ventories the number entered here will be the first size-up, 
 and at the next inventory a new sheet can be started, since 
 it is decidedly convenient to have the Consohdation Sheets 
 coincide with the inventory periods. With the commendable 
 growing practice in the retail shoe trade of taking an inven- 
 tory every six months, each Consolidation Sheet, constructed 
 for one year, would cover two fiscal periods. At the middle 
 inventory, that is, at the end of the first six-month period, as 
 a memorandum a figure may be entered in red in a corner of 
 space I, if desired. The next space (II) is for the sum of all 
 the figures in the spaces 1-1 G, representing the total pairs 
 bought of that size and width during the year. The space 
 (III) is for the number of pairs of shoes on hand at the end the 
 year, as shown by the last Size-up Sheet. The last space (IV) 
 gives the sales for that size and width for the year. This fig- 
 ure is obtained by deducting the figure in the third space (III) 
 from the sum of the figures in the first two spaces (I -f- II). 
 If any shoes have been entered as ordered but not received, 
 the number of pairs not received should, of course, also be de- 
 ducted.
 
 23 
 
 This summary is especially important for determining 
 which sizes and widths were purchased in too great quantity 
 during the year. Reference to the record of the individual 
 orders will show which order was too large. These facts fur- 
 nish a guide for purchases in future seasons. Whenever it is 
 desired during the year to compare sales, orders, and stock 
 by sizes and widths, the figures can be obtained from this 
 Order Record and the Size-up Sheet. The sales are deter- 
 mined by subtracting from the sum of the number of pairs 
 on hand at beginning and the nmnber of pairs ordered, the 
 sum of the number of pairs on order and the number of pairs 
 on hand at the last size-up. The Bureau recommends fre- 
 quent comparisons of this sort in order that the retailer may 
 learn promptly whether or not all of his stock is moving with 
 sufficient rapidity. 
 
 The Record of Receipts, in the lower left-hand corner of 
 of the Consolidation Sheet, is a concise record of the neces- 
 sary facts about the receipts of goods ordered. A copy of 
 half of the Record of Receipts is shown on page 25. 
 When was each order on the Order Record given ? What 
 dehvery date was promised ? When did receipts begin ? 
 How many separate receipts were there before the order was 
 completely filled and how many pairs, if any, were yet to 
 come after each receipt ? These are questions answered by 
 the Record of Receipts. Provision is made on the Record 
 of Receipts for sixteen orders, to correspond to the sixteen 
 spaces above in the Order Record. There are no entries for 
 sizes and widths. The total number of pairs of the first order 
 should be the sum of the '' l " spaces for all sizes and widths 
 in the Order Record above. The second and third orders 
 should be the sum of the " 2 " and " 3 " spaces respectively 
 in that record and so on with the remaining thirteen, if that 
 number of orders is required.
 
 24 
 
 The n'l'oril for (^;ich order is as follows: 
 
 Order Na 
 
 Date of 
 Order 
 
 No. 
 Pairs 
 
 Delivery 
 Date 
 
 Receipts 
 
 
 
 
 
 Date 
 
 
 
 
 
 Pre. Rec'd 
 
 
 
 
 
 Prs. Due 
 
 
 
 
 
 At the left, the number of the order, as shown by the order 
 blank, is entered. In the second column is entered the date 
 when the order was given. In the third column — " No. 
 Pairs " — is entered the total number of pairs on the order; 
 as just explained, this is the sum of the entries in the spaces 
 in the Order Record above corresponding to this order. Under 
 " DeHvery Date " is entered the date of delivery specified or 
 promised by the wholesaler or manufacturer. These facts are 
 all determined from the Order Record or from the order blank. 
 Under " Receipts " four columns are provided for recording 
 as many as four receipts upon a single order. On the top line 
 of the first " Receipts " column the date is entered on which 
 the first shipment on the order is received. On the second 
 line in the same column the number of pairs received in the 
 first shipment is entered. This number is subtracted from 
 the total number of pairs ordered, as previously entered, to 
 show the number of pairs due. This figure for " Pairs Due " 
 is entered on the third line. The second " Receipts " column 
 is used similarly for a record of the second shipment received 
 on the order; in the third and fourth columns the third and 
 fourth shipments are likewise recorded. If the entire order 
 is filled in one shipment, of course only the first " Receipts " 
 column is used for that order. The receipts on each of the 
 sixteen orders are recorded in the same manner. 
 
 jVoie carefully that just as the order blanks are to he filled 
 from the Order Record, so the first four columns on the Record 
 of Receipts are to be filled from the order blanks, original or
 
 25 
 
 Order No. 
 
 Date of 
 Order 
 
 No. 
 Pairs 
 
 Delivery 
 Date 
 
 . Receipts 
 
 
 
 
 
 Date 
 
 
 
 
 
 Prs. Rec'd 
 
 
 
 
 
 Prs. Due 
 
 
 
 
 
 
 
 
 
 Date 
 
 
 
 
 
 Pra. Rec'd 
 
 
 
 
 
 Prs. Due 
 
 
 
 
 
 
 
 
 
 Date 
 
 
 
 
 
 Pra. Rec'd 
 
 
 
 
 
 Prs. Due 
 
 
 
 
 
 
 
 
 
 Date 
 
 
 
 
 
 Prs. Rec'd 
 
 
 
 
 
 Prs. Due 
 
 
 
 
 
 
 
 
 
 Date 
 
 
 
 
 
 Prs. Rec'd 
 
 
 
 
 
 Prs. Due 
 
 
 
 
 
 
 
 
 
 Date 
 
 
 
 
 
 Prs. Rec'd 
 
 
 
 
 
 Prs. Due 
 
 
 
 
 
 
 
 
 
 Date 
 
 
 
 
 
 Prs. Rec'd 
 
 
 
 
 
 Prs. Due 
 
 
 
 
 
 ILLUSTRATION OF A PORTION OF RECORD OF RECEIPTS, 
 
 CONSOLIDATION SHEET (Form 7c) 
 
 Harvard System of Stock-keeping for Shoe Retailers 
 
 carbons,^ and never from the Order Record directly. The Rec- 
 ord of Receipts is to be filled after the order form is filled and 
 not before. Those who follow these instructions will save 
 themselves avoidable, inconvenient, and expensive errors. 
 
 1 The Bureau recommends, even though the carbon is presumably 
 identical, that the entries be made from the original before it is sent 
 to the manufactiu-er or wholesaler. This not only makes more certain 
 the accuracy of the Record of Receipts but it insures its being kept 
 up-to-date and serves as an additional check on the carbon which ia 
 used to note receipts.
 
 26 
 
 Not only is it much easier to enter from the filled out order 
 than to skip spaces and add figures in the Order Record but 
 if the " Receipts " section is to be of serv'ice, it is also abso- 
 lutely necessarj- for the Record of Receipts to correspond 
 exactly in pairs ordered with the actual order given to the 
 manufacturer or wholesaler. The percentage of error is 
 bound to be less if the Record of Receipts is filled directly 
 from the order placed rather than from the Order Record, 
 even though the order was itself originally determined from 
 the Order Record.^ 
 
 Last on the ConsoUdation Sheet is the Stock Record, which 
 without regard to sizes and widths shows by months and 
 weeks for a j'ear the receipts, sales, and returns of the stock 
 number under consideration. A copj- of the Stock Record is 
 shown on the opposite page. This record furnishes the all- 
 important information of the tendency of sales and stock of 
 this stj'le to increase or decrease. By assembling the facts 
 for convenient periods so that they can be easily compared, 
 the Stock Record gives a valuable guide for buj-ing. For 
 example, at any size-up a shoe retailer might find his stock 
 on a common size and width to be the same as the original 
 " On Hand " — no greater and no less. WTiether he should 
 reduce or increase his stock in this size and width of this 
 stock number would probablj* depend on what the Stock 
 Record showed him about the sales of that stock number in 
 all sizes and widths. It would depend upon whether total 
 sales for the last few months were declining or increasing and 
 also upon the time to elapse before the end of the season. If 
 the height of the season has passed the retailer should be 
 extremely cautious in giving new orders for seasonal goods. 
 
 The operation of the Stock Record is apparent; one column 
 is pro^nded for each of the twelve months. The first item, 
 
 * Occasionally an order cannot be completely filled and Ls cancelled 
 short. In such cases the proper change should be made on the Record 
 of Receipts not by erasing but by crossing the old figtires and inserting 
 the new — so as to show just what change was made.
 
 27 
 
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 28 
 
 " On Hand," in e;u'h column is llio quantity on hand at the 
 first of eac'li month. For the first montii and usually for the 
 seventh month it would be the inventory, in number of pairs, 
 at the beginning of the year or period. It should, of course, 
 in theory equal the sum of the " On Hands " in the Order 
 Record for the corresponding date, but in practice there may 
 be discrepancies (see page 31). The next five spaces in the 
 column arc for the " Weekly Receipts " of shoes by pairs. 
 Five spaces allow for complete weeks and the part or parts of 
 weeks completing the month. The Receipts spaces can be 
 readily filled from the Record of Receipts at the left of the 
 Consolidation Sheet. The total of receipts on dates falling in 
 the given week will be the Receipts entry for that week in the 
 Stock Record. The next item is the Total Receipts for the 
 month, the sum of the five weekly entries above. 
 
 In the space next below — " Returns " — the total num- 
 ber of pau's of this stock numlier returned during the month 
 is entered. Tliis figm^e is brought from the Sales Summary 
 Sheet as explained on page 13. Since the returns of each 
 stock number will ordinarily be small, space is provided on 
 the Stock Record only for the monthly total of Returns. 
 
 For this stock number the total number, of pairs of shoes 
 available for sale during the month is the sum of the number 
 of pairs On Hand at the beginning of the month, the Total 
 Receipts, and the Total Returns. This sum is entered in the 
 space designated on the Stock Record. 
 
 For " Weekly Sales " five spaces are provided, as for 
 Weekly Receipts — one space for each weekly total of sales 
 as recorded on the Sales Summary Sheet (page 13). As pre- 
 viously explained the figure for the incomplete week which 
 makes up the total for the month, in addition to the four full 
 weeks, is obtained by counting the tallies of the sales for the 
 .days in the part of the week at the beginning or ending of 
 the month. The sum of the weekly totals for sales is entered 
 in the space designated — " Total Sales — Month."
 
 29 
 
 " Total Sales to Date," the last space on the Stock Record, 
 is for the sum of the montlily totals. At the end of the 
 second month, for example, the Total Sales for that month 
 are added to the Total Sales for the first month and the sum 
 entered as " Total Sales to Date." Thus this cumulative 
 total always gives the " Total Sales to Date," including the 
 sales for all the months in the year to date. Each monthly 
 column in the Stock Record is used in the same manner. 
 
 The On Hand at the beginning of the second month is found 
 by subtracting " Total Sales — Month " of first month from 
 " Total On Hand, Receipts, and Returns " of first month. 
 If at any time net sales of shoes are wanted, " Returns " 
 should be deducted from " Total Sales — Month." 
 
 With this general explanation of the three sheets of the 
 Harvard System of Stock-keeping for Shoe Retailers a sum- 
 mary of the working of the system as a whole can be given. 
 The Sales Summary Sheet (Form 7a) is the starting point. 
 Inspection of it shows where size-ups should be taken. The 
 record on the Sales Summary Sheet indicates the fastest 
 selling stock numbers, which should be inspected to see how 
 the sizes and widths are holding out and what '' fill-ins " are 
 necessary. It also indicates the slowest selling stock num- 
 bers for which it is desired to know how many sizes are 
 likely to be "left-overs." These two classes demand atten- 
 tion first ; size-ups of the normally selling stock numbers will 
 be taken in the ordinary routine. 
 
 As soon as it has been determined what stock numbers 
 should be sized-up, the Size-up Sheet (Form 7b) — one sheet 
 for each stock number — is brought into use. This is filled 
 from an exact count of shoes in stock. The upper spaces arc 
 filled like any size-up sheet with tallies of figures for the pairs 
 on hand. Reference to the order carbon enables " Pairs on 
 Order " and " Pairs Due " to be inserted in the lower spaces 
 of the Size-up Sheet. The method of obtaining this informa- 
 tion from order carbons will be discussed later. The Size-up
 
 no 
 
 Slu'ots are (lien attacliod with dips to their respective Con- 
 sohdation Sheets (Form 7e). For evcMy stock number there 
 is a ConsoUilation Sheet that hears tiiat number and to which 
 the Size-up Sheet with the corresponding stock number should 
 be attached. 
 
 The Order Record of the Consolidation Sheet is next used. 
 The person buying will first compare the previous Size-up 
 Sheet with the last Size-up Sheet just attached to see whether 
 stock of the respective sizes and widths is increasing, running 
 even, or decreasing. He notes also the lower right-hand 
 spaces of the Size-up Sheet to see what pairs are due. Glanc- 
 ing at the Record of Receipts in the lower left-hand corner 
 of the Consolidation Sheet, he learns how promptly deliveries 
 have been made in the past and what deliveries may be lack- 
 ing. Finally the Stock Record in the lower right-hand section 
 of the Consolidation Sheet shows the all-important tendency 
 of sales for tliis stock number ^ — whether increasing, decUn- 
 ing, or continuing at about the same volume. On the basis 
 of these facts a buying decision is reached and the figures 
 for the orders decided upon are entered in the proper spaces 
 of the Order Record. Spaces not used are crossed. The 
 order for the manufacturer or wholesaler is then made out. 
 
 The usual order blank is similar to a size-up form with 
 proper headings and at least one carbon. This order blank 
 is ruled so that it can be made out readily from the Order 
 Record by sizes and widths. The total number of pairs it 
 represents, its date and the expected date of delivery will be 
 entered on the Record of Receipts below. As the order blank 
 is made out, circles are drawn around the spaces in the Order 
 Record as explained on page 21. The original of the order 
 goes to the manufacturer or wholesaler and the carbon is 
 
 1 It might be noted again that the information on the Order Record 
 is by sizes and widths, while that on the Record of Receipts and Stock 
 Record is for numbers only, all sizes and widths being thrown together. 
 This is the result of testing to find where size and width data are most 
 useful and where least required or not worth the trouble of getting.
 
 31 
 
 retained by the retailer on which receipts are checked and 
 from which they are entered on the Record of Receipts. 
 When the shoes are sold, the sales figures are entered on the 
 Sales Summary Sheet. Finally, at the end of each week, the 
 Stock Record is brought down to date and the records are 
 complete. The Bureau believes that in this procedure not 
 an unnecessary entry has been made or a necessary entry 
 omitted, and a stock-keeping system is provided which it 
 pays the shoe retailer to use. 
 
 At inventory time the accuracy with which the records have 
 been kept can be checked up by comparing the " On Hands " 
 of the Stock Record with the actual inventory, and by com- 
 paring the sum of the " Sales " spaces (IV) in the Order 
 Record with the Total Sales to Date of the Stock Record mi- 
 nus the total Returns. Some discrepancies are likely to be 
 found, due possibly to theft, of which many shoe retailers 
 complain, and due in part to the fact that errors inevitably 
 creep into any records which are not frequently checked and 
 balanced. In the Harvard System of Stock-keeping for Shoe 
 Retailers, if the errors are small, it may not be worth while to 
 trace them down, but ejfforts should be made to prevent their 
 recurrence. So far as compensating errors have been made, 
 differences between the recorded " On Hand " and the actual 
 counts on one sheet will be offset by differences on the oppo- 
 site side on other sheets, and the Stock Records as a whole and 
 the inventories as a whole will check. Mistakes may be made 
 in size and width but should not occur in number of pairs; 
 the " overs " and " shorts " should be equal. Exact agree- 
 ment between them, however, is not absolutely necessary. If 
 errors are infrequent, although not entirely eliminated, the 
 stock-keeping system gives running information of sufficient 
 accuracy and of great aid while the size-ups give the precise 
 information most needed. 
 
 A few suggestions about the installation and operation of 
 the system may be of assistance. The best time to begin the
 
 32 
 
 use of the system is at inventory time. Then the records on 
 the Consol illation Shoot (Form 7c) will coincide with the in- 
 ventory poiiotl or periods of the business and the " On 
 Hands " will be those of inventory. It is by no means im- 
 pcMativo, however, that an inventory be waited for. Prob- 
 altly the next best time to start is on the first of a month, 
 which gives records for unbroken months on the Stock Rec- 
 ord. If started between inventories the system will become 
 distinctly useful before the next inventory, especially if aided 
 by a general size-up taken at its introduction. The Bureau 
 doubts the advisability' of trying to fill in the sheets from old 
 records, but recommends beginning with the current business 
 — a clean slate. For a time, until the new sheets accumulate 
 data, the old records will have to be relied upon. This is 
 especially true in using the Order Record of the Consolidation 
 Sheet. It seems wise to use the old records directly rather 
 than to trouble to transfer them, since in a short time the new 
 sheets will contain the vital facts. 
 
 Daily entries are required only on the Sales Summary 
 Sheet (Form 7a) but it is urged that the other sheets be taken 
 care of regularly. One of the chief benefits of a stock-keep- 
 ing system is lost if it is not kept up to date. Furthermore, 
 records easily kept with but a few minutes' attention each 
 day become burdensome if allowed to accumulate and are 
 apt to be neglected. The manager of a shoe store soon learns 
 the rush and quiet business hours. During the quiet hours 
 the necessary routine work such as receiving and sizing-up 
 is carried on. If a certain portion of that time, say the first 
 or second half-hour or hour in the morning, is set aside for 
 entering the preceding day's receipts and sales of shoes, it 
 will soon become habitual and there can be no question that 
 it pays. 
 
 Though the system itself is equally applicable to all sizes 
 of businesses, the arrangements for keeping it may vary 
 according to the volume of sales. In a small shoe store
 
 33 
 
 (employing not more than 2 or 3 persons including the pro- 
 prietor or partners, with yearly sales ranging from $12,000 
 to $30,000) the proprietor himself may do all the work of 
 sizing-up and stock-keeping. It is advantageous for the pro- 
 prietor of a shoe business of this size to do all of this work 
 himself since in no other way can he acquire so much valuable 
 information about the state of his stock in so short a time. 
 If the proprietor does not take the size-ups and keep the stock 
 records himself, the sizing-up should be done by one person 
 and the keeping of the other stock records by another. This 
 will afford a check upon losses. The proprietor will find it 
 advisable to size-up his stock personally from time to time 
 in order to check the accuracy of previous records. 
 
 In a medium-sized shoe store (emplojang 4 to 6 persons, 
 with yearly sales of from $40,000 to $60,000) the proprietor 
 or a partner does the buying, but the sizing-up, receiving, 
 and stock-keeping may be done by employees. Frequently 
 an employee who is responsible and accurate and therefore 
 well fitted for keeping stock records is not the salesman selling 
 most; consequently, he can be employed on the stock records 
 without diverting the most valuable selling time. If the store 
 is departmentalized between men's, women's, and children's 
 shoes, there can be one person in each department to size-up. 
 Whatever the arrangement for sizing-up, the entries on the 
 other sheets of the stock-keeping system should be made by 
 one person only, but not by the person who takes the size-up. 
 By having one person keep the stock records, facility, accur- 
 acy, and uniformity of entries are obtained and responsibility 
 is fixed. By having the size-up taken by another person, a 
 check upon the accuracy of the records is secured. 
 
 In a large shoe business (employing 10 persons and more 
 with sales ranging from $100,000 to $1,000,000) specialization 
 is necessary. The stock will be sized-up in divisions with one 
 person to each division. There will be a buyer or buyers, a 
 receiving clerk or force, and a stock-keeper. Usually there
 
 34 
 
 will be a store-room ' as an imincdiiito reserve for the selling 
 floor or flooi-s. Size-up Sheets will be turned in daily for 
 various stock numbers and at once attached by the stock- 
 keeper to their respective Consolidation Sheets; to these 
 also are attached the last Size-up Sheets. These combined 
 sheets are laid on the buyer's desk. He may note an order on 
 the Buying Record, or he may lay the sheet aside for the 
 time. Those sheets to be used for ordering are laid in a pile 
 for the order clerk, who may or may not be the stock-keeper, 
 according to the magnitude of the business. He fills the 
 order blanks and turns them over, together with the Consoli- 
 dation Sheets to the stock-keeper who makes the necessary 
 entires on the Eecord of Receipts of the Consohdation Sheet 
 and destro3^s or files the Size-up Sheet just preceding the last 
 one. Meanwhile, the receiving clerk has been checking re- 
 ceipts on order carbons or making daily memoranda of the 
 pairs received by mmibers for the stock-keeper. The sales, 
 however transmitted (see pages 35-36), are coming in con- 
 stantly from the floor. 
 
 The Bureau believes that sizing-up should be a daily process 
 for some portion of the stock. What part of the stock this 
 is, the other sheets, especially the Sales Summary Sheet, will 
 show. Though some portions of the stock should be sized-up 
 more frequently than others, the Bureau beheves that the 
 whole stock of a retail shoe business should be covered by 
 at least one size-up every two weeks. If attempted as a 
 
 ' This may involve a separate store-room record showing : On Hand, 
 Receipts, and To Floor. If so, the Size-up Sheets will be for the floor 
 only and account will have to be taken of the store-room record. If, 
 however, the store-room merchandise is kept in regular multiples by 
 racks convenient to note, the size-up can include the store-room as well 
 as the floor. After investigation and consideration the Bureau has pro- 
 vided no store-room record; in each case the advisability of having such 
 9, record will be determined by the conditions governing the individual 
 shoe business. Such a record, if kept, will be a memorandum in addi- 
 tion to the Harvard System of Stock-keeping for Shoe Retailers.
 
 35 
 
 general size-up on a certain day in each fortnight it would 
 be a task indeed, but done each day, stock number by stock 
 number or Hne by Hne, it becomes an important but not 
 burdensome part of the daily routine. 
 
 The method of securing entries of the sales on the Sales 
 Summary Sheet the Bureau has left to the preference of the 
 individual shoe retailer. The usual way is from the carbon 
 of the sales slip on which the salesperson has entered the 
 stock number, size, and width, as well as the price of the shoe. 
 As has already been noted (page 16), under this method there 
 is a tendency toward errors due especially to rush hours and 
 the emplojonent of extra salespersons. To avoid these errors 
 some dealers have used tags, about 2 x 4| inches gummed at 
 one end. When the shoes are received, the proper stock num- 
 bers are entered on the tags which are attached to the carton. 
 The loose end is to be torn off and turned in with the sales 
 slip ^ when the shoes are sold. It is doubtless true that the 
 entry on the tag made at the receipt of the shoe with ample 
 time and no distraction is apt to be more accurate than the 
 entry on the sales shp during the rush of selhng. The follow- 
 ing difficulties with the tag system have, however, been re- 
 ported. The salesperson and the wrapper, if there is one, 
 must remember the tag as well as the slip. Even greater care 
 must be exercised to make sure that shoes shown but not 
 sold are returned to their proper cartons. New tags have to 
 be prepared for shoes returned. 
 
 Because of these difficulties and also for the following rea- 
 sons the Bureau is inclined to recommend adherence to a 
 carbon of the sales slip as a means for transferring sales to 
 the Sales Summary Sheet (Form 7a). First, the Sales Sum- 
 mary Sheet does not require a size and width entry but sim- 
 
 ^ Where there is a store-room the tag is in duphcate, that is, perforated 
 in the center. The first half is torn off when the shoes go to the floor 
 and the second when they are sold. To permit rapid assorting the tags 
 should have distinctive colors according to the kind of shoe — men's, 
 women's, children's.
 
 86 
 
 ply the entry of the stock number of the shoe. This fact 
 lessens somewhat both the (UMuands on the salesperson and 
 the chance of error. As already exphuned, the Size-up Sheet 
 (Form 7b) is relied upon for size and width information. 
 Second, it is almost universally true that salespersons at the 
 conclusion of a sale have to make or register an entry of some 
 sort whether the sale be cash or charge. Little additional 
 time is required to write the stock number. Third, though 
 in the Harvard Sj'stem of Stock-keeping for Shoe Retailers 
 errors in sales slip entries are somewhat less likely and less 
 important, errors can nevertheless be minimized if attention 
 is given to the matter and especially if a wrapper is em- 
 ployed (the wrapper may also be the cashier or the utility 
 boy). If a bonus of fifteen cents a day is paid to each sales- 
 person for each errorless day, each error discovered to repre- 
 sent one day's bonus, and if furthermore a bonus of five cents 
 is paid to the wrapper for each error detected in copying on 
 the sales slip, there will be a marked reduction in errors. 
 This reduction in errors can be brought about at less expense 
 than may commonly be supposed. Part of it may ultimately 
 come in a reduction of PM's because of a cleaner stock. The 
 records of bonuses received can be considered in raising sala- 
 ries or in installing a different system of compensation. 
 
 The Bureau further recommends that the sales slips be in 
 distinguisliing colors according to the land of shoes sold — 
 men's, women's, children's, and others. These slips can be 
 in groups in the same sales book; their use greatly facilitates 
 the preliminary sorting of sales by the stock-keeper. 
 
 Although, if preferred, cards can be used for stock-keeping, 
 the Harvard System of Stock-keeping for Shoe Retailers is in 
 sheet form only and can be most conveniently used in loose- 
 leaf binders. Some dealers may prefer to have separate 
 binders for their men's and women's shoes respectively. The 
 ^ales Summaiy Sheets, one for each four weeks, thirteen for 
 the year, would come first in the binder, followed by the
 
 37 
 
 Consolidation Sheets. The Size-up Sheets of course will not 
 be in these binders, except as those filled in are temporarily 
 attached to the Consohdation Sheets. The Size-up Sheets, 
 either in loose form or in blocks, will probably be most 
 conveniently filled if they are attached to an ordinary clamp 
 board. This furnishes a support, yet permits removal or 
 change at will. 
 
 This stock-keeping system furnishes the retailer with 
 records to guide his buying and to aid in obtaining a faster 
 stock-turn. The Consolidation Sheet records show which 
 styles, sizes, and widths have been most frequently demanded 
 by his customers. By basing his orders at the beginning of a 
 season on his previous experience, he can buy intelligently. 
 During the season the Sales Summary Sheet shows constantly 
 which stock numbers are moving and which, if any, are stag- 
 nant. Stocks of shoes which are not moving should be 
 watched with especial care in order that they may be dis- 
 posed of with as small a sacrifice as possible and in order that 
 losses from depreciation may be checked. For styles, sizes, 
 and widths which are in demand, the records on the Size-up 
 Sheets and Order Records provide a necessary guide for re- 
 plenishing his stock. By regulating his orders and his stock 
 in accordance with these records a retailer can meet the re- 
 quirements of his trade and at the same time insure a rapid 
 stock-turn. 
 
 45(i774
 
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