Accession Number:

ADA218443

Title:

Military Logistics. Buying Army Spares Too Soon Creates Excess Stocks and Increases Costs

Descriptive Note:

Corporate Author:

GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIV

Personal Author(s):

Report Date:

1989-08-01

Pagination or Media Count:

57.0

Abstract:

The Army received about 3.3 billion in fiscal years 1987 and 1988 to buy spare and repair parts. Its basic challenge in spending these funds is to ensure that it has the proper amount of stock on hand when required. If stock is bought too late and inventory levels get too low, the Army cannot satisfy customer demands, and the capabilities of its forces may be hindered. On the other hand, if stock is bought too early and inventory levels get too high, money is invented in stock that may not be needed. As a result, the Army could incur unnecessary costs to hold and store these excessive inventories. GAO also reviewed internal control practices at one buying command to determine whether they supported item management decisions and precluded unnecessary purchases. JG

Subject Categories:

  • Logistics, Military Facilities and Supplies

Distribution Statement:

APPROVED FOR PUBLIC RELEASE