Accession Number : ADA616109


Title :   Defense Inventory: Services Generally Have Reduced Excess Inventory, but Additional Actions Are Needed


Corporate Author : GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a616109.pdf


Report Date : Apr 2015


Pagination or Media Count : 92


Abstract : The Army, Navy, and Air Force are responsible for about $78 billion of DOD s $98 billion in secondary item inventory, such as spare parts needed to maintain military equipment. GAO identified DOD supply chain management as a high-risk area due in part to ineffective and inefficient inventory management practices that have contributed to high levels of excess inventory relative to total inventory. DOD established goals to reduce the percentages of both onhand and on-order excess inventory. GAO was asked to review DOD's inventory management practices. This report assesses the extent to which the services have (1) reduced on-hand excess inventory consistent with DOD goals, (2) reduced on-order excess inventory consistent with DOD goals, (3) balanced the timely availability of spare parts with supply chain costs in their inventory management metrics, and (4) implemented and monitored key improvement efforts. GAO analyzed inventory data from September 2009 through March 2014; evaluated the services inventory processes; and interviewed service and OSD officials.


Descriptors :   *DEPARTMENT OF DEFENSE , *INVENTORY CONTROL , *MILITARY FORCES(UNITED STATES) , LOGISTICS MANAGEMENT , MILITARY EQUIPMENT , SPARE PARTS


Subject Categories : Logistics, Military Facilities and Supplies


Distribution Statement : APPROVED FOR PUBLIC RELEASE