The Air Force Can Reduce Inventories by Eliminating Unneeded Stock Levels

Gao ID: LCD-76-425 June 17, 1977

The Air Force can reduce funds that are tied up in inventories by eliminating unnecessary special-level and safety-level stocks.

Air Force policy allows bases to stock spare and repair parts for any part which fails at least twice in 12 months. Special stock levels consist of parts the need for which is not based on prior use but rather on their use in special projects or as emergency standby equipment. By relying more on the item manager to determine where to store and how to redistribute assets to meet various needs, the Air Force could free sizable funds invested in these special stocks to meet more critical supply needs. The item manager is in the best position to determine whether the worldwide stock level of reparable items at all supply echelons is sufficient to keep acquisitions at a minimum.

Recommendations

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