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<classification authority="sudocs">GA 1.13:NSIAD-94-110</classification>
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 <subject>Military inventories</subject>
 <subject>Military procurement</subject>
 <subject>Electronic equipment</subject>
 <subject>Federal supply systems</subject>
 <subject>Military cost control</subject>
 <subject>Equipment inventories</subject>
 <subject>Spare parts</subject>
 <subject>Inventory control systems</subject>
 <subject>Logistics</subject>
 <subject>Non-government enterprises</subject>
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 <title>Commercial Practices: DOD Could Reduce Electronics Inventories by Using Private Sector Techniques</title>
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<abstract>The value of the Defense Department&apos;s (DOD) secondary inventories, which
include spare parts for weapon systems, electronic, and other hardware,
increased by $60 billion between 1980 and 1988. Private sector firms are
streamlining their operations by adopting innovative inventory
management strategies that cut costs and improve service. In most areas,
however, DOD has not streamlined operations and continues to buy and
store redundant levels of electronic items, valued at more than $2
billion. The size of DOD&apos;s electronic inventory reflects a philosophy of
meeting customer needs by having huge stocks on hand. The Defense
Logistics Agency&apos;s large inventory turns over slowly--about once every
four years on average, contains large levels of excess and obsolete
items, and costs DOD millions of dollars each year to hold. DOD is
trying to improve its logistics system, including using private sector
practices--long-term contracting, electronic ordering systems, and
direct delivery program--to manage some electronic supplies. Efforts to
implement these practices, however, affect only a small portion of
electronics supplies.</abstract>
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 <topic>Military inventories</topic>
 <topic>Military procurement</topic>
 <topic>Electronic equipment</topic>
 <topic>Federal supply systems</topic>
 <topic>Military cost control</topic>
 <topic>Equipment inventories</topic>
 <topic>Spare parts</topic>
 <topic>Inventory control systems</topic>
 <topic>Logistics</topic>
 <topic>Non-government enterprises</topic>
 <topic>F-14 Aircraft</topic>
 <topic>A-6 Aircraft</topic>
 <topic>DLA Standard Automated Materiel Management System</topic>
 <topic>DLA Paperless Order Placement System</topic>
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