DOD Can Save Millions of Dollars by Improving the Management of Air Force Inventories

An examination was made of the policies, procedures, and practices of the Department of Defense and the Air Force for identification and cancellation of excess stocks due-in, and for making small dollar issues from depot stocks. The examination took place at Headquarters, Air Force Logistics Command, and at two air logistics centers.

The Air Force can reduce investments in inventories by tens of millions of dollars annually by improving its system for controlling stock excesses and by placing greater management emphasis on the need for timely cancellation or deferral of procurements for items in excess of normal system requirements. Air Force depots filled many individual requisitions for low-value amounts, which were repetitive, and incurred processing costs which exceeded their sales value. The large volume of these issues made yearly by Air Force depots could be substantially reduced and significant savings in warehouse handling costs could be realized by establishing more economical units of issue.

Recommendations

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