Military Logistics:

Improvements Needed in Managing Air Force Special Stock Levels

NSIAD-87-34: Published: Dec 23, 1986. Publicly Released: Dec 23, 1986.

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GAO evaluated the reasonableness and accuracy of the Air Force's procedures and practices for establishing and managing special stock-level requirements for recoverable aircraft and missile spare parts.

GAO found that the Air Force Logistics Command (AFLC) has taken actions to revise its methodology for establishing special stock levels based on the D041 system requirements, which will result in more accurate requirements determinations and preclude procurement of unneeded materiel at its five air logistics centers. However, further revisions are necessary because the revised methodology determines special stock-level requirements based on initial requirements computed, not the final requirements, resulting in overstated or understated stock levels. Bases may request adjusted stock levels and submit them for item-manager approval if their normal stock levels do not meet their needs. After receiving approval, the bases input the adjusted levels and forward transaction cards to the appropriate center for input to the D143H automated system. Although automating this process would eliminate item manager computations and human errors, the two systems are not interfaced and the D143H system is inaccurate. The D143H system does not include 37 percent of the $130 million in adjusted base stock levels approved and already included in the D041 system, and the D143H system includes $1.3 million of adjusted stock levels that have not been approved or input to the D041 system.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: The Air Force programmed the D041 system to consider special levels when computing total organizational and intermediate base stock levels during the quarterly final computations.

    Recommendation: The Secretary of the Air Force should direct the Commander, AFLC, to program the Recoverable Consumption Item Requirements Computation System (D041) to automatically determine special stock level requirements at the time final requirements are computed.

    Agency Affected: Department of Defense: Department of the Air Force

  2. Status: Closed - Implemented

    Comments: The Air Force developed computer software to implement this recommendation, but communication problems have thus far prevented its use. The Air Force expects to begin performing automated reconciliations as soon as communication problems are resolved.

    Recommendation: The Secretary of the Air Force should direct the Commander, AFLC, to establish procedures to provide for annual reconciliations of base stock requirements included in base stock records and those reflected on air logistics center records. As part of these reconciliations, causes of any discrepancies should be identified and eliminated.

    Agency Affected: Department of Defense: Department of the Air Force

  3. Status: Closed - Implemented

    Comments: The Air Force published directions to implement the recommendation in AF Manual 67-1.

    Recommendation: The Secretary of the Air Force should direct the Commander, AFLC, to direct the air logistics centers to either: (1) enter the adjusted base stock levels in the D143H system immediately after item manager approval; or (2) establish procedures to ensure that approved adjusted base stock levels are input to both base stock records and the D143H system within a reasonable time.

    Agency Affected: Department of Defense: Department of the Air Force

  4. Status: Closed - Implemented

    Comments: AFLC was told to reemphasize and monitor the need to comply with the recommendation.

    Recommendation: The Secretary of the Air Force should direct the Commander, AFLC, to direct air logistics centers to require detailed justification for adjusted stock level requests to support peak demand periods when it is determined that normally forecasted requirements should have been sufficient to satisfy actual usage. If it is determined that normally forecasted requirements are not sufficient to avoid stockouts during peak demand periods, the air logistics centers should be required to investigate the causes of the stockouts and consider the feasibility of redistributing available worldwide assets prior to authorizing special stock levels.

    Agency Affected: Department of Defense: Department of the Air Force

 

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