Quick-Reaction Report on the Defense Logistics Agency's Adjustment of Wholesale Inventory Levels After Operation Desert Storm
Abstract
As part of the overall objectives for the Audit of Requisitions in Support of Operation Desert Storm (Project No. lLE-5003), we evaluated the effect of Operation Desert Shield/Storm (ODS) requisitions on the DoD wholesale supply system's inventory requirements. We reviewed the policies and practices followed by the Defense Logistics Agency's supply centers to adjust inventory requirements and return to a peacetime logistics posture after hostilities ended. The supply centers took various actions in an attempt to minimize the effect of ODS demands on forecasted requirements and initiated large cutbacks in previously approved purchases after ODS. However, our review of 57 items with $52.2 million of procurements in process, as of July 1991, indicated that purchases of about $19.2 million for 18 of the items were excessive to forecasted peacetime requirements. Additional action was needed because not all stock levels were adequately adjusted to exclude ODS demands that were not representative of peacetime requirements and thus allow inventories to deflate to levels appropriate to supporting peacetime operating forces.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 10, 1992
- Accession Number
- ADA378526
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense