Army Inventory:

Reparable Exchange Items at Divisions Can Be Reduced

NSIAD-95-36: Published: Dec 28, 1994. Publicly Released: Dec 28, 1994.

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Pursuant to a congressional request, GAO reviewed the Army's inventory system of reparable exchange items to determine if one of the inventory levels could be eliminated or reduced without adversely affecting units' ability to deploy or perform their peacetime missions.

GAO found that: (1) many reparable exchange items that are repaired and stocked at the installation level are also stocked at the division level; (2) divisions could reduce their inventory investment by as much as $46.7 million if they use their installations as their primary supply source for reparable exchange items; (3) although Army officials believe that eliminating these items from divisions' inventories could affect unit deployment, there is more than sufficient inventory at the installation and wholesale level depots to meet the divisions' authorized inventory without retaining such items at the division level; and (4) training units could retain a minimum number of readiness-related reparable exchange items at the division level to avoid returning to the installation for replacement items.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: The Army has an ongoing review of its policy to reduce the duplication of reparable items stored at both the division and installation level. DOD issued a revised reparable exchange policy statement in July 1996 that revamped the stockage of reparable exchange items at both levels.

    Recommendation: The Secretary of the Army should issue guidance to the divisions that directs them to review their authorized stockage lists and minimize the number of reparable exchange items stocked at the division level. In this regard, the divisions should rely primarily on the installations to provide needed supply support for those reparable exchange items that are repaired at the installation level.

    Agency Affected: Department of Defense: Department of the Army

 

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