United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office National Security and International Affairs Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1997-01-17 monographic deposited born digital 16 p. GA 1.13:NSIAD-97-47 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-97-47 P0b002ee180383474 f:ns97047 DGPO 2010-08-12 2011-03-28 GAOREPORTS-NSIAD-97-47 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-97-47 NSIAD-97-47 Logistics Military inventories Military cost control Spare parts Military downsizing Property disposal Army supplies Air Force supplies Inventory control systems Surplus federal property Letter Report NSIAD

GAO reviewed how the military services can reduce their spare and repair parts storage and holding costs by consolidating or disposing of inventory that is not needed to meet current operating and war reserve requirements or is requested infrequently.<p/>GAO found that: (1) most of the services' inventory items stored at nonmajor locations are in small quantities; (2) over 53 percent of the items were in quantities of 3 or less, while only 25 percent were in quantities of 11 or more; (3) however, the inventory at the nonmajor locations is valued at over $8.3 billion; (4) the need for many of the items stored at nonmajor locations is questionable; (5) of the $8.3 billion of inventory at the nonmajor locations, $2.7 billion of it was not needed to meet the services' current operating and war reserve requirements; (6) GAO's analysis also showed that many of the Army items were infrequently issued over the 2-year period ending August 1996; (7) over 53 percent of the items at nonmajor storage locations had no issues and an additional 33 percent of the items had less than five issues during the same 2-year period; (8) maintaining inventory that is not needed is expensive and does not contribute to an effective, efficient, and responsive supply system; and (9) based on GAO's analysis, GAO estimates the services could save about $382 million annually in inventory holding costs by eliminating inventory at nonmajor locations that is not needed to meet current operating and war reserve requirements. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-97-47/html/GAOREPORTS-NSIAD-97-47.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-97-47/pdf/GAOREPORTS-NSIAD-97-47.pdf GAO/NSIAD-97-47 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-97-47 Letter Report GAO/NSIAD-97-47; Defense Inventory: Spare and Repair Parts Inventory Costs Can Be Reduced; Logistics Military inventories Military cost control Spare parts Military downsizing Property disposal Army supplies Air Force supplies Inventory control systems Surplus federal property Title 31 Section 720 31 U.S.C. 720