Inventory Management

Army Needs To Reduce Retail Level Excesses Gao ID: NSIAD-87-197 September 2, 1987

GAO examined the Army's procedures for controlling excess stocks of secondary items to determine whether retail installations were: (1) reporting excess items to the National Inventory Control Point (NICP) for subsequent redistribution to other facilities; (2) retaining the items; (3) redistributing them to another installation; or (4) disposing of them in some other manner.

GAO found that: (1) installations were not reporting excess stocks to NICP; (2) excess items at six major Army command installations increased from $85.1 million in 1984 to $155.3 million in 1986; (3) unreported excess at two of the 14 installations it examined increased from 43 percent and 29 percent in 1984 to 75 percent and 74 percent, respectively, in 1986; (4) installations failed to report excess items because they had improperly retained them for direct exchange or for management purposes; and (5) NICP managers were often unaware that items which were in excess at one location were in short supply at others.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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