Need To Improve Requirements Computations For Expensive Missile Repair Parts

B-163706: Published: May 27, 1968. Publicly Released: May 27, 1968.

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GAO reviewed the more significant aspects of requirements computations for expensive missile repair parts by the Army Missile Command.

GAO noted that: (1) a number of problem areas affecting the computation of requirements for expensive missile repair parts need improvement in order for the Missile Command to be able to provide more effective and economical supply support to Army missile units; (2) these problems were primarily related to: (a) inadequacy of asset and demand data received from user activities; (b) failure of inventory managers to accurately compile, review, and use historical supply data; and (c) inconsistency in the implementation of supply management procedures and guidelines; (3) problems noted during GAO's review contributed to imbalances in the supply system; (4) in some cases, significant errors in projected requirements had resulted in underprocurements which can eventually lead to supply shortages and deadlined equipment; (5) in other cases, overstated requirements had led to unnecessary procurements which can result in excess material; (6) the problems identified in the computation of requirements for these expensive repair parts indicated that more effective controls were needed in the preparation and review of supply control studies; and (7) considerable improvement also was needed in the accuracy and completeness of asset and demand data required to be supplied by using activities.