The Army Can Save Millions Annually by Properly Considering Serviceable Returns in Its Requirements Computations

A review was undertaken of the way the Army removes invalid demands, representing unsuccessful attempts by customers to cancel orders, from its demand database. Currently, the Army's wholesale supply system's procedures reduce demands in the database by crediting the amount of serviceable materiel customers return. However, the automated system at each inventory control point can be set to limit or prevent serviceable returns from initiating demand reductions in the system's database. Moreover, the U.S. Army Materiel Development and Readiness Command (DARCOM) has given the inventory control points blanket authority to use these limitations without prior notice or approval.