This study provides an overall assessment of present exchange organizational structures and suggests ways and means of increasing the responsiveness of the exchange services and the operational efficiency with which they are managed. It also provides a summary of the interfaces and problem areas which are of particular concern to the Office of the Secretary of Defense. The study evaluates management practices and techniques in such functions as procurement, pricing, inventory management, physical distribution, financial management, personnel management, etc. Conclusions and recommendations are pointed toward greater commonality of systems and the development of policies which will give equal advantages to all customers in a local area, regardless of their military service affiliation. The study presents three organizational alternatives ranging from the status quo to a single armed services exchange service. In addition the study discusses in some detail the military command relationships involved.