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Army Inventory: Divisions' Authorized Levels of Demand-Based Items Can be Reduced

NSIAD-93-9 Published: Oct 20, 1992. Publicly Released: Oct 20, 1992.
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Highlights

Pursuant to a congressional request, GAO reviewed whether the Army's inventory levels of demand-based items are excessive and whether those inventory levels could be reduced without impairing military readiness.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Army In the Army's fiscal year 1992 annual Federal Managers' Financial Integrity Act report on internal controls, the Secretary of the Army should identify: (1) the retention of demand-based items that do not meet retention criteria as a material internal control weakness; and (2) an action plan to correct the weakness.
Closed – Implemented
The Army FY 1992 FMFIA identified demand-based items that do not meet the criteria for retention as material weakness and directed all commands to identify such items and delete them from the authorization stock list.
Department of the Army The Secretary of the Army should direct the Deputy Chief of Staff for Logistics to reassess the criteria for determining which items and what item quantities should be retained on divisions' authorized stock lists. The reassessment should be performed with a view toward making the retention criteria more restrictive in order to ensure that the Army's inventory investment optimizes item demands, issues, and supply responsiveness.
Closed – Implemented
The Army has an ongoing initiative to study the current criteria and determine whether they need to be revised. The criteria for determining what and how much inventory should be maintained at the division are the minimum criteria. Commanders can reduce the inventory levels beyond the minimum criteria.
Department of the Army The Secretary of the Army should not approve STA for implementation at the retail level unless it can be clearly demonstrated that the concept can achieve its intended objectives and that it will not conflict with the objectives of a single supply system.
Closed – Implemented
The Army decided that STA would not be implemented at the retail level.

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Topics

Government Operations
Army procurementArmy suppliesCombat readinessDefense contingency planningEquipment inventoriesInternal controlsInventory control systemsMilitary cost controlMilitary inventoriesReporting requirements