The Air Force Can Reduce Inventories by Eliminating Unneeded Stock Levels
LCD-76-425: Published: Jun 17, 1977. Publicly Released: Jun 17, 1977.
- Full Report:
The Air Force can reduce funds that are tied up in inventories by eliminating unnecessary special-level and safety-level stocks.
Air Force policy allows bases to stock spare and repair parts for any part which fails at least twice in 12 months. Special stock levels consist of parts the need for which is not based on prior use but rather on their use in special projects or as emergency standby equipment. By relying more on the item manager to determine where to store and how to redistribute assets to meet various needs, the Air Force could free sizable funds invested in these special stocks to meet more critical supply needs. The item manager is in the best position to determine whether the worldwide stock level of reparable items at all supply echelons is sufficient to keep acquisitions at a minimum.
Recommendation for Executive Action
Comments: Please call 202/512-6100 for additional information.
Recommendation: To reduce its investment in special stock levels, the Secretary of Defense should instruct the Air Force to strengthen the review and approval process for special stock levels at its Air Logistics Centers. Item managers should determine if the system can respond to a special-level need without acquiring additional assets. They should consider whether enough of the items are located at Air Force bases worldwide, actual or expected demand, and the potential to effectively support missions by promptly redistributing assets. The Air Force should also be instructed to eliminate from the procurement determination process all requirements that item managers have established to prevent stocks from being disposed.