Military Logistics. Buying Army Spares Too Soon Creates Excess Stocks and Increases Costs

Abstract

The Army received about $3.3 billion in fiscal years 1987 and 1988 to buy spare and repair parts. Its basic challenge in spending these funds is to ensure that it has the proper amount of stock on hand when required. If stock is bought too late and inventory levels get too low, the Army cannot satisfy customer demands, and the capabilities of its forces may be hindered. On the other hand, if stock is bought too early and inventory levels get too high, money is invented in stock that may not be needed. As a result, the Army could incur unnecessary costs to hold and store these excessive inventories. GAO also reviewed internal control practices at one buying command to determine whether they supported item management decisions and precluded unnecessary purchases. (JG)

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Document Details

Document Type
Technical Report
Publication Date
Aug 01, 1989
Accession Number
ADA218443

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Armored Personnel Carriers
  • Contracts
  • Control Systems
  • Databases
  • Department Of Defense
  • Electron Tubes
  • Governments
  • Inventory
  • Lead Time
  • Logistics
  • Materials
  • National Governments
  • Procurement
  • Production
  • United States
  • Vehicle Equipment

Readers

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