Defense Logistics Agency Could Better Identify and Cancel Unneeded On-Order Material.
GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIV
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To carry out inventory management at its supply centers, DLA has established the Standard Automated Material Management System SAMMS. This connects the centers distribution, requirements, contracting, and financial subsystems and provides necessary data for uniformly managing DLAs stock fund inventories. DLA has established procurement cycles for items based on value and demand for them. Procurement cycles included in SAMMS are expressed in months and are derived using economic order quantity computations. Our primary objective was to determine whether DLAs procedures and practices for identifying and canceling unneeded on-order material were effective and whether they contributed to unnecessary inventory investment andor procurement costs. We monitored the following activities between July 1982 and April 1983 DLA, Cameron Station, Virginia The Defense Industrial Supply Center DISC, Philadelphia, Pennsylvania, and The Defense Electronics Supply Center DESC, Dayton, Ohio. We reviewed material management policies and procedures included in DLAs Material Management and Supply Operations Manuals. The procedures are applicable at all centers where supply transactions are processed by SAMMS.
- Administration and Management
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies