Army Inventory Management in Korea

LCD-77-214: Published: May 9, 1977. Publicly Released: May 9, 1977.

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The Army's inventory management system in Korea is part of the direct support system. The purpose of the system is to reduce the large peacetime investment in overseas depot stocks for the support of combat divisions and their support units. The Army has reestablished a 30-day depot safety level of stocks at Camp Carroll which consists of 12,500 items valued at about $2.5 million.

The data used to identify the items and compute the requirements did not accurately represent the items or quantities that should make up the safety level. This safety-level concept represents, in general, the same one to which the Army Audit and GAO took exception in 1973 and 1974. The rationale for the reestablishment of the depot safety level was questionable, and a reevaluation of the safety level of stocks is needed. The reestablished safety level is not necessarily related to mission-essential items or high-priority needs. Increased stockage has not been the solution to unit "stock-out" problems, and the present program for redistributing stock fund excesses has not been effective.

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