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PLRD-83-36 1 (1983-02-07)

handle is hein.gao/gaobabmuz0001 and id is 1 raw text is: 
UNITED STATES GENERAL ACCOUNTING OFFICE
        WASHINGTON. D.C. 20548


PROCUREMEiT, LOGISTICS,
AND READINESS DIVISION

B-210360


FEBRUARY 7.1983


The Honorable Verne Orr
The Secretary of the Air Force


Dear Mr. Secretary:


Subject :


Continued Improveme ts Needed in Air Force Proce-
dures and Practices for Identifying and Canceling
Excess On-order Stocks (GAO/PLRD-83-36)


     We have completed a followup review of the effectiveness of
actions taken by the Air Force to improve its procedures and
practices for identifying and canceling excess on-order stocks
of system support stock fund items (aircraft subassemblies, repair
parts, and consumables). Our review identified continuing prob-
lems which inhibit the identification and potential cancellation
of excess on-order stocks valued at tens of millions of dollars
annually.

     In response to an earlier report I/ on this subject, the Air
Force made a policy change which increased the potential for can-
celing excess on-order stocks by $39 million or more. Our follow-
up review shows that the Air Force can further increase its poten-
tial for cancellation of such stocks by $58 million or more. This
can be done by doing more to correct weaknesses which we previously
identified and which still exist.

     In computing requirements and termination levels for on-order
stocks, the Air Force is still using excessive buffers of stock
above item requirements, which precludes timely identification and
cancellation of on-order stocks which exceed requirements. Also,
the Air Force still does not have an effective system to monitor
the performance of air logistics centers in canceling excess on-
order stocks.






1/DOD Can Save Millions of Dollars by Improving the Management
  of Air Force Inventories (LCD-80-6, Oct. 25, 1979).



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