Michigan Administrative Code
Department - Labor and Economic Opportunity
Bureau of Services for Blind Persons
Vending Facility Program Rules
Section R. 393.22 - Initial vending facility inventory

Universal Citation: MI Admin Code R. 393.22

Current through Vol. 24-16, September 15, 2024

Rule 22.

(1) The commission shall do all of the following:

(a) Furnish the licensed vending facility with an initial 2-week merchandise inventory in an amount that is determined in consultation with the vending facility licensee. The vending facility licensee shall sell only the types of items stated in the permit with the building grantor and in the licensee's agreement with the commission.

(b) Use the estimated, or actual if available, purchase costs for a 1-year business cycle divided by 26 for determining the initial 2-week merchandise inventory. The administrator may authorize deviations from the formula if the deviation does not violate other provisions of these rules. Fully documented requests for deviation from the formula shall be submitted to the administrator in writing for approval.

(c) Include the initial itemized inventory as a part of the vending facility agreement form. The assigned inventory value shall be recorded on the vending facility inventory record. The total amount of the assigned inventory value shall be recorded on the vending facility agreement.

(d) Annually adjust the inventory amount based upon the wholesale food price index as published by the U. S. department of labor bureau of labor statistics.

(2) Except as specified in subrule (1)(d) of this rule, the initial merchandise inventory amount shall not be increased unless a significant business expansion, adjusted for inflation, occurs or additional product lines or services are added. A significant business expansion is an expansion that is expected to last for 6 or more months.

(3) If a significant business expansion occurs, then the formula for determining the amount of the additional inventory assignment shall be the formula specified in subrule (1)(b) of this rule, but substituting the projected sales of new business products or services for a 1-year business cycle. The additional expanded amount shall be covered by the commission at the time the expanded inventory is initially purchased, but shall be added to the assigned inventory amount as a licensee responsibility.

(4) Both the initial merchandise inventory stock and the expansion inventory, if applicable, are added together to become the beginning assigned inventory amount for which the licensee is responsible.

(5) An itemized inventory of the expansion items shall be added to the beginning inventory and attached to the vending facility agreement.

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