Air Force Logistics: Improved Backorder Validation Procedures Will Save
Millions (Letter Report, 04/20/94, GAO/NSIAD-94-103).

The Air Force continues to have large quantities of invalid backorders
in its wholesale and retail supply systems because they are not detected
and canceled when they are no longer needed.  GAO and the Air Force have
worked together to identify invalid backorders valued at more than $209
million at 17 retail supply activities that the Air Force later
canceled.  Also, since 1987, the Air Force has suspended a program for
automatically canceling backorders when retail supply activities do not
respond to quarterly requests to reconcile wholesale and retail
backorder records.  The suspension has resulted in lost opportunities to
cancel millions of dollars worth of invalid backorders each quarter.
The failure to identify and cancel invalid backorders was due to (1) a
lack of detailed validation guidance, (2) inadequate management
oversight and resolution of problems flagged by quarterly backorder
reconciliation reports, and (3) the prolonged suspension of the
automatic cancellation program.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  NSIAD-94-103
     TITLE:  Air Force Logistics: Improved Backorder Validation 
             Procedures Will Save Millions
      DATE:  04/20/94
   SUBJECT:  Air Force procurement
             Aircraft components
             Spare parts
             Inventory control systems
             Military inventories
             Military cost control
             Military materiel
             Logistics
             Aircraft maintenance
             Computerized information systems

             
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