Defense Inventory: DoD Needs to Continue Efforts to Improve Management and Reduce Stocks
Abstract
I am pleased to be here today to discuss inventory management issues in the Department of Defense (DOD). We have been reporting on problems with DOD's inventory management for a long time. Over the last 20 years, we have issued more than 130 reports dealing with these problems. The problem areas we have examined include growth in the amount of unrequired inventory; weaknesses in the requirements determination processes; continuing to order material that is already excess to needs; and a lack of visibility over assets. Although DOD has recently taken steps to improve inventory management, we see the problems to be of such magnitude that we have identified defense inventory management as 1 of 16 government activities that are highly vulnerable to mismanagement, fraud, and abuse. DOD classifies its inventories as principal items (e.g. tanks, aircraft engines, ship components, and aircraft components) or secondary items. Examples of secondary items include aircraft, tank, and ship spare and repair parts; construction, medical, and dental supplies; and food, clothing, and fuel. These inventories are stored at major depots (wholesale level) and at installation warehouses (retail level). My testimony today deals primarily with secondary items.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 19, 1992
- Accession Number
- AD1169196
Entities
People
- Frank C. Conahan
Organizations
- United States Government Accountability Office