The Navy Can Increase Cancellations of Procurements for Unneeded Material.

Abstract

This is a letter from the GAO to Secretary of the Navy, Hon. John F. Lehman. GAO studies the Navy's procedures and practices for canceling procurements of unneeded material. The study showed that cancellations can be increased, thereby reducing unnecessary procurement and inventory investment costs. GAO believes that cancellations can be much higher. The following are the principal reasons cancellations are not higher. --The inventory control points have established high dollar review thresholds. --The inventory control points apply protection levels to provide an added buffer against running out of stock. --Inventory managers do not always act on cancellation notices in a timely manner. --Management and supervisory attention over the cancellation process is limited. Report includes a letter from DOD to GAO in reply.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Mar 22, 1985
Accession Number
ADA156293

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Accounting
  • Cancellation
  • Contracts
  • Control Systems
  • Cost Benefit Analysis
  • Department Of Defense
  • Inventory
  • Inventory Control
  • Management Personnel
  • Measurement
  • National Security
  • Personnel Management
  • Procurement
  • Sampling
  • Statistical Sampling
  • Statistics
  • Supervisors

Readers

  • Defense Acquisition Program Management
  • Logistics and Supply Chain Management.