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PLRD-82-26 1 (1981-12-22)

handle is hein.gao/gaobabctk0001 and id is 1 raw text is: 117124 Rear Admiral A. A. Giordano Commander, Naval Supply Systems Command Subject: The Aviation Supply Office Continues To Have Problems With the Accuracy of Its Requirements Determinations (PLRD-82-26) Dear Admiral Giordano: We have completed our review of Navy requirements determinations for aeronautical spares and repair parts at the Aviation Supply Office (ASO) in Philadelphia, Pennsylvania. This report discusses ASO's problems in accurately letermining parts requirements. We also reviewed the Navy's techniques for forecasting leadtimes and demands. The Navy has used some innovative techniques to iden- tify data trends and to forecast leadtime and demands. We believe these techniques may be adaptable to other Department of Defense requirements determination systems. Our views, conclusions, and recommendations on this matter have been presented in a separate report to the Secretary of Defense entitled The Services Should Improve Their Processes For Determining Requirements For Supplies And Spare Parts (PLRD-82-12, Nov. 30, 1981). BACKGROUND ASO provides logistics support for about 4,400 operating Navy and Marine aircraft valued at more than $14 billion. It uses the Navy's Uniform Inventory Control Point computer program to manage about 280,000 items with an inventory valued at $4.5 billion. ASO annually procures over $1 billion in spare parts and assemblies and employs over 2,400 people, including about 380 inventory managers, to carry out its inventory manaqement functions. We randomly selected 100 items from a universe of 2,611 reparable and consumable items recommended for purchase as of May 4, 1980, and tested the accuracy of the data elements used in determining these requirements. Using the results of our review of the sample items, we developed projections at a 95-percent confidence level. (947424)

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