Need to Improve Management of Shelf-Life Items at Storage Activities
LCD-77-211: Published: Jun 29, 1977. Publicly Released: Jun 29, 1977.
- Full Report:
At the end of June 1976, the Navy's inventories of shelf-life items, items of supply possessing deteriorative or unstable characteristics requiring a storage time period to be assigned, amounted to about $483.4 million.
Although procedures call for proper identification of shelf-life items to be disposed of, there is no provision for summarization and periodic reporting of the volume or value of items whose shelf-life has expired. A review found that the Norfolk Naval Air Station lacked an effective shelf-life program. The shelf-life of many items in stock had expired; some expired items had been issued to users; and expiration dates of some items were missing or incorrect. The first-in, first-out method of issue was not being followed; newer stock was issued before the older stock of an item. The Naval Supply Depot at Subic Bay in the Philippines had a management program for shelf-life items, but improvements were needed to assure adequate storage and issue. The two installations used different procedures for managing extendable shelf-life items which expired in stock. Management, in general, was unaware of the extent and value of losses due to expiration of shelf-life.
Recommendation for Executive Action
Comments: Please call 202/512-6100 for additional information.
Recommendation: The Secretary of Defense should: establish a management reporting system or other means routinely to identify the extent to which material is disposed of because of expired shelf-life; and determine the extent to which instructions and procedures for the management of shelf-life items have been implemented at the Navy's major stock points.