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PLRD-82-110 1 (1982-08-13)

handle is hein.gao/gaobabmng0001 and id is 1 raw text is: UNNED STATES GENERAL ACCOUNTING OFFICE i /q/ WASHINGTON, D.C. 20U8 PY4OCURZXM=4T. LoSUTIC16 AND READINMS DIVISIO B-205309 119191 AUGUST 13,1982 The Honorable Verne Orr The Secretary of the Air Force Dear Mr. Secretary: Subject: Excessive Administrative Leadtime Used to Determine Requirements in the Air Force's System Support Stock Fund (GAO/PLRD-82-110) We have reviewed the administrative leadtime for items in the automated System Support Stock Fund (DO 62 system) at the Ogden Air Logistics Center, Hill AFB, Utah. We found that inaccurate administrative leadtimes were being used in deter- mining inventory needs. These inaccuracies could result in unnecessary procurements of up to $6.3 million to accommodate the excessive leadtime. Administrative leadtime is the time between a buy notice and the purchase order date or contract award date. The leadtime in the DO 62 system, in most cases, is based upon the last buy of the item and will generally influence only the next purchase. Since leadtime is one of the factors used to determine order quantities, reasonable and accurate leadtimes maximize efficient use of stock fund resources by limiting inventory investment to the level needed to support mission requirements. At the time of our review, Ogden was managing over 93,000 stock fund items, valued at over $431 million. Of these, 5,411 items, valued at $136.6 million, had administrative leadtimes exceeding 120 days. Ogden is one of five air logistics centers operating within the Air Force Logistics Command (AFLC). If the conditions found at Ogden are also occurring at the other four centers, the Air Force may be incurring millions of additional dollars in unnecessary costs. BACKGROUND AFLC is responsible for technical and logistics support of Air Force weapons systems. It carries out its responsibilities at headquarters located at Wright-Patterson AFB, Ohio, and at five air logistics centers. At each center, items are assigned to an item manager who determines worldwide requirements, quantities to be acquired, and where and how many items should be stocked. (943123)

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