Inventory levels of finished goods at the flagship store are set by headquarters with sales and marketing consultation. Finished goods inventory is owned by the manufacturing facility until loaded on a truck (FOB Shipping Point) to a distributor or sent to the flagship store which then takes ownership. Online sales directly to customers are sent from the manufacturing facility Physical inventory is taken once a year and the completion of cycle counts is at the discretion of the facility manager. Adjustments to inventory levels due to spills, damaged goods, old age, etc. are done once per month and are approved by the facility manager and headquarters.