High Risk Series:

Defense Inventory Management

HR-93-12: Published: Dec 1, 1992. Publicly Released: Dec 1, 1992.

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GAO reviewed the Department of Defense's (DOD) management of military supplies, focusing on DOD maintenance of: (1) high excess inventory levels; and (2) systems for determining supply needs.

GAO found that: (1) each military service and the Defense Logistics Agency (DLA) individually maintained inventories of spare and repair parts in accordance with their own projected needs; (2) DOD estimated that its excess inventory costs over $30 billion; (3) the services' excess inventories increased during the 1980s by 150 to 240 percent; (4) DOD oversight and inventory information and control systems were inadequate and ineffective and led to the overstatement of supply requirements; (5) DOD must undergo an organizational culture change, such as adopting commercial practices, to reduce the costs of inventory procurement and maintenance; and (6) DOD is increasing cost awareness in its business practices by such means as charging the full cost of items and services to the military units that use them.

Below are the reports in this series:

High Risk Series: Farmers Home Administration's Farm Loan Programs HR-93-1, Dec 1, 1992

High Risk Series: Guaranteed Student Loans HR-93-2, Dec 1, 1992

High Risk Series: Bank Insurance Fund HR-93-3, Dec 1, 1992

High Risk Series: Resolution Trust Corporation HR-93-4, Dec 1, 1992

High Risk Series: Pension Benefit Guaranty Corporation HR-93-5, Dec 1, 1992

High Risk Series: Medicare Claims HR-93-6, Dec 1, 1992

High Risk Series: Defense Weapons Systems Acquisition HR-93-7, Dec 1, 1992

High Risk Series: Defense Contract Pricing HR-93-8, Dec 1, 1992

High Risk Series: Department of Energy Contract Management HR-93-9, Dec 1, 1992

High Risk Series: Superfund Program Management HR-93-10, Dec 1, 1992

High Risk Series: NASA Contract Management HR-93-11, Dec 1, 1992

High Risk Series: Defense Inventory Management HR-93-12, Dec 1, 1992

High Risk Series: Internal Revenue Service Receivables HR-93-13, Dec 1, 1992

High Risk Series: Managing the Customs Service HR-93-14, Dec 1, 1992

High Risk Series: Management of Overseas Real Property HR-93-15, Dec 1, 1992

High Risk Series: Federal Transit Administration Grant Management HR-93-16, Dec 1, 1992

High Risk Series: Asset Forfeiture Programs HR-93-17, Dec 1, 1992

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