Army Inventory:

Opportunities Exist for Additional Reductions to Retail Level Inventories

NSIAD-94-129: Published: Jun 6, 1994. Publicly Released: Jun 6, 1994.

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GAO reviewed the Army's progress toward reducing its inventory levels for infrequently requested items and whether additional actions are required to streamline the Army's inventory systems.

GAO found that: (1) between 1992 and 1993, five Army divisions reduced their authorized inventory levels by about $30 million; (2) about $108 million of the five divisions' authorized inventory did not meet the needs of their customers; (3) of the $108 million in authorized inventory, $46.9 million was invested in low demand inventory items and $61 million was invested in inventory that was issued to 11 percent of the divisions' customers; (4) the cost-effectiveness of the Army's investment in retail inventory items that contribute little toward satisfying the needs of its customers is questionable; and (5) the Army has acknowledged that it needs to remove infrequently demanded items from its authorized inventories and reevaluate its inventory retention criteria.

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