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Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) on-hand approved acquisition objective inventory, focusing on whether its Supply System Inventory Report adequately disclosed the amount of: (1) secondary inventory needed to ensure uninterrupted supply; and (2) excess inventory.

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Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense 1. The Secretary of Defense should separate in the Supply System Inventory Report the amount of inventory that it has on hand to satisfy its reorder point and replenishment formula requirements from additional inventory it is currently reporting as approved acquisition objective.
Closed - Not Implemented
DOD disagreed with the findings and stated that GAO did not consider a $26 billion shortage that existed on September 30, 1991. GAO is looking at the shortage and will report on it in the near future.

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