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.
![handle is hein.gao/gaobaackg0001 and id is 1 raw text is:
DOCUMENT RESUME
C2620 - [A1752780]
The Air Force Can Reduce Inventories by Eliminating Unneeded
Stock Levels. LCD-76-425; B-133396. June 17, 1977. 18 pp. + 3
appendices (7 pp.).
Report to Secretary, Dopartment of DefsIase; by Fred J. Shafer,
Director, Logstics and Communications Div.
Issue Area: Facilities and Material Management: Requirements for
Equipment, Spare Parts and Supplies (7012); Federal
Procurement of Goods and Services: Procvtrement of Only
Needed Quantities of Goods (1901).
Contact: Logistics and Communications Div.
Budget Function: Ulational Defense: Departmeat of Defense -
Military lexcept procurement & contracts) (051).
Organizaticn Concerned: Department of the Air force.
Congressional Relevance: House Consittee on Armed Services;
Senate Committee on Krmed Services.
The Air Force can reduce funds Vhat are tied up in
inventories by getting rid of unnecessary special level and
safety level stocks. Findings/Conclusions: Air Force policy
allows bases to stock spare and repair parts for any part which
fails at least twice in 1? months. Special stock levels consist
of parts the need for which is not based on prior use but rather
on their use in special projects or as emergency standby
equipment. By relying more on the item manager to determitie
where to store and how to redistribute assets to meet various
needs, the Air Force could free sizable funds invested in these
special stocks to meet more criticel supply needs. The item
manager is in the best position to iat-rmine whether the
worldwide stock level of reparable items at all supply echelons
is sufficient to keep acquisitions at a minimum.
Recommendations: To reduce its investment in special stock
levels, the Secretary of Defense should instruct the Air Force
to strengthen the review and approval process for special stock
levels at its Air Logistics Centers. Item managers should
determirie if the system can respond to a special level need
without acquiring additional assets. They should consider
whether enough of the items are located at Air Force bases
worldwide, actual or expected demand, and the potential to
effectively support missions by promptly redistributing assets.
The Air Force should also be instructed to eliminate from the
procurement determination process all requirements that item
managers have established to prevent stocks from being disposed
of. (Auth-r/SC)](ViewImageLocal?handle=hein.gao/gaobaackg0001&div=1&collection=&method=preview&ext=.png&size=3)