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LCD-80-105 1 (1980-08-22)

handle is hein.gao/gaobabaxv0001 and id is 1 raw text is: ~113 I Iq UNITED STATES GENERAL ACCOUNTING OFFICE , _ WASHINGTON, D.C. 20548 LOGIS ICS ANO COMMUNICATIONS DIVISION B-200044 AUGUST 22,1980 General Bryce Poe, II Commander, Air Force Logistics Command Wright-Patterson AFB, Ohio 113119 Dear General Poe: Subject: (Millions of Dollars Can Be Saved By Storing 'ir Force Inventories Nearer the User and Improving Distribution Practice-,*JLCD-80-i05) We reviewed how the Air Force Logistics Command (AFLC) positions and distributes its multi-billion dollar spare parts inventory and how it controls the shipment of repar- able items to repair centers. We found problems and opportunities for substantial savings which warrant your attention. AFLC has not positioned its spare parts inventories at the air logistics centers which could best service cus- tomers while still minimizing distribution cost. Most of this inventory is first stored at an air logistics center with item management responsibility and then shipped long distances to using activities located at or near other air logistics centers. The Air Force can save up to $28.7 mil- lion on inventory investment costs and $1.8 million yearly in handling, transportation, and inventory holding costs by storing spare parts at the air logistics center located nearest the ultimate user. Up to $835,000 more yearly can be saved by eliminating reshipments of reparable items to repair centers. Although new AFLC regulations address the problems, we are concerned about effective implementation because a similar policy promulgated 4 years ago was not followed. (943463) O7 7.3

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