SWAG 1 Activity #3: Bookkeeping — Current Inventory Control

Refer to the letter and use it to explain the problem to the client, such as, “We use the fines and replacement costs that we collect when the letter is received to purchase additional books and videos. So that we can decide how many new books or videos we will be able to purchase when our patrons respond to the letter, we need to decide whether the patron is likely to purchase the book or video or send in the fine with the book or video.”

Provide the client with the stack of white cards with side 1 up and Form E. Explain the card and Form E to the client, using appropriate language and referring to the letter as well. Say something such as, “Sort each card by whether the fine for the book or video is more than the replacement cost. If the fine is more, we think that the patron will pay the fine and return the book. Put those cards into this stack. Record your answers on Form E.”

Provide the client with a ten-key calculator to make the calculations that are necessary. This task can be done on a “paper and pencil” basis or on the computer, using the provided Excel spreadsheets.

Activity 3 Tasks
Task #	Problem	Task	Resources
1	How many of each title are likely to be purchased when the letter is received?	Compare the replacement costs with the current fine and sort cards by whether book or video is likely to be purchased.	Side 1 of White or Blue card, Form E
2	What is the total amount of replacement costs that will be collected for each title that is purchased?	Multiply the replacement costs for each title by the number that are likely to be purchased.	Side 1 of White or Blue card, Form E
3	What are the total fines due now for each title that is not purchased?	Add the fines for titles that are not likely to be purchased now.	Side 1 of White or Blue card, Form E
4	How many books and videos of each title can we purchase if we collect current fines and replacement fees?	Add the fines for titles that are not likely to be purchased to the fees collected for replacements and divide by the replacement cost.	Side 1 of White or Blue card, Form E