Defense Inventory: Shortages Are Recurring, but Not a Problem
NSIAD-95-137
Published: Aug 07, 1995. Publicly Released: Aug 07, 1995.
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Highlights
GAO reviewed inventory shortages in the Department of Defense's (DOD) secondary, nonweapon inventory, focusing on: (1) the size of the shortages; (2) inventory managers' actions in response to the shortages; (3) whether funding problems caused managers not to buy needed items; and (4) the need for revising DOD inventory reporting.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | 1. To provide Congress and DOD management with better oversight of DOD inventory, the Secretary of Defense should direct that the Supply System Inventory Report be revised. Specifically, the inventory report should identify: (1) inventory that is needed to be on hand or on order to satisfy reorder point and economic order quantity requirements; and (2) reasons for holding inventory beyond that amount. |
DOD strongly disagreed with the recommendation, stating that it would define required inventory differently for inventory reporting purposes and budgeting purposes. GAO disagrees with DOD's position.
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Topics
Cost effectiveness analysisDefense contingency planningDefense procurementInventory control systemsLogisticsMedical suppliesMilitary inventoriesReporting requirementsSpare partsInventory