About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

PLRD-82-56 1 (1982-03-15)

handle is hein.gao/gaobabczy0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 PROCUREMENT. LOGISTICS, AND READINESS DIVISION MARCH 15, 1982 Dr. Donald P. Hearth Director, Langley Research Center National Aeronautics and Space I Administration Dear Dr. Hearth: 117804 Subject: ,,The Requirements Determination Process Can Be Improved At NASA's Langley Research CenterI(PLRD-82-56) We have completed our review of the requirements determination process for stores stocks at the National Aeronautics and Space Administration's (NASA's) Langley Research Center. Our objective was to determine the accuracy and reasonableness of the data elements and methods used to compute requirements. Langley manages a stores stock inventory of about 8,000 items with an inventory value of about $2.6 million. Stores stock items consist of general support type items of an expendable nature. As such, Langley uses the Economic Order Quantity (EOQ) method to determine when and how much to buy. The EOQ principle was designed to optimize the tradeoffs between the cost of carrying on-hand stock and the cost of repetitive procurement. Improper decisions concerning when and how much to buy not only result in unnecessary inventory management costs, but also cause the inventory manage- ment activity to maintain and store either too much or too little stock. In either case, resources are not used prudently, and the benefits of optimum stock levels are lost. We selected a statistical sample of 50 stores stock items and used these items as the basis for evaluating Langley's demand and leadtime forecasting methods, safety level requirements, and EOQ method. We later reduced the sample to 46 items because the low demand for 4 items resulted in a zero stockage objective. To improve the requirements determination process, we believe that you should --change the demand forecasting technique from a moving average to a weighted average, (943125)

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most