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NSIAD-93-35R 1 (1992-11-10)

handle is hein.gao/gaobacked0001 and id is 1 raw text is: I 1Eq'2 GAO United States General Accounting Office Washington, D.C. 20548 National Security and International Affairs Division B-222859 November 10, 1992 IIIlllii 1111 The Honorable Richard B. Cheney 147972 The Secretary of Defense Dear Mr. Secretary: This letter presents the results of our review of the inventory manager position at the Defense Logistics Agency (DLA). Our objective was to obtain information on inventory managers' practices in selected DLA Inventory Control Points and selected private sector companies: Ford Motor Company, International Business Machines, Delta Air Lines, Boeing Company, and United Air Lines. The private sector operated differently than DLA in three areas: (1) the use of forecasting tools, (2) the emphasis on expediting deliveries of material on order, and (3) visibility of assets below the wholesale level. BACKGROUND As of November 1992, DLA had about 800 inventory managers, who manage more than 3 million items. These managers are responsible for many aspects of defense supply, including requirements validation, demand forecast review, procurement activity initiation, requisition processing, and management of excess assets on hand and on order. The inventory managers use an automated inventory management system that periodically compares inventory requirements with assets and forecasts demands. This system is also used to recommend actions to increase or reduce stock levels to meet projected requirements. 1Defense Personnel Support Center, Defense Industrial Supply Center, Defense General Supply Center, and Defense Electronics Supply Center. GAO/NSIAD-93-35R INVENTORY MANAGEMENT 1 17

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