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Defense Inventory: Opportunities to Reduce Warehouse Space

NSIAD-95-64 Published: May 24, 1995. Publicly Released: Jun 23, 1995.
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Highlights

Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) inventory management system, focusing on the: (1) size and space occupied by DOD secondary inventory; (2) cost of storing this inventory; and (3) efforts taken to reduce DOD secondary inventory.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should develop a systematic approach for reviewing the secondary inventory currently on hand. The Secretary could begin by instructing inventory control points and program managers to focus their inventory reduction efforts on the material that occupies a great deal of storage space and has more than 20 years of supply on hand.
Closed – Not Implemented
DOD advised that it had a systematic approach for reducing storage space and did not plan to change its approach. DOD stated that its latest edition of its logistics strategic plan calls for reducing inventory from $73 billion in 1994 to $52 billion in 2001.

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Topics

National Defense
Combat readinessDefense cost controlInventory control systemsLogisticsMilitary inventoriesProperty and supply managementSpare partsSurplus propertyWarehouse facilitiesInventory