#1: Consider the control functions: receiving through issues. List and define each function, and provide one example of "shrinkage" that might occur at each control point. Start with the Purchasing function. Please develop one standard operating procedure (SOP) that might mitigate the shrinkage example. Question #2, Case: By now you should have a grasp of the control cycle in general, and the purchasing function in particular. You should be able to make alignments between any defects in the purchasing cycle, and the bottom line (profit) of the operation. In this case your perpetual inventory records reveal that you have in-house 3 cases of frozen lobster. Each case contains 14oz frozen lobster tails and there are 18 tails per case. In fact, since this is a high cost item, you go into your freezer, see the three cases stacked three high. You open the top case and see that it is full as it should be. You then go on to complete your ending inventory valuation calculations, to include the cost of the the three full cases of lobster tails. What you are unaware of, is the fact that someone has predicted your inspection pattern and have helped themselves to several lobsters from the bottom case. At what point will this theft shrinkage reveal itself, and what type of shrinkage is this? Please be thorough and thoughtful in your response. When would you become aware of the loss, and how would this impact your operation, service and profitability