Army Inventory: Growth in Inventories that Exceed Requirements.

reportActive / Technical Report | Accession Number: ADA282602 | Open PDF

Abstract:

For the 5-year period ending September 30, 1988, the Armys wholesale level inventory increased from 6.1 billion to 12 billion. The former Chairman of the Subcommittee on Readiness, House Committee on Armed Services, asked GAO to determine how much of this inventory growth could be attributed to the Armys buying and maintaining more inventory than it needed to meet its military requirements. The former Chairman also asked GAO to determine what had caused the growth and what actions needed to be taken to curb it without impairing military capability. Inflation, price increases, and the major modernization efforts undertaken by the Army all contributed to the inventory growth. It was not possible to quantify the extent of inventory growth. It was not possible to quantify the extent of inventory growth attributable to each of the various factors. One fact was clear, however the percentage of inventory that was not needed to meet approved requirements grew faster than overall inventories

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