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089452 1 (1970-03-05)

handle is hein.gao/gaobacvli0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D C 20548 CIVIL DIVISION MAR 5 1970 Dear Mr. Spangler As you know, we recently examined into the Federal Supply Service's (FSS) procedures and practices relative to the identification and elimina- tion of nonessential items from the stores system. In making this examination, we noted a related matter that seemed to be in need of attention, namely, the setting of certain stocking patterns for stores items. In analyzing demand data that had been furnished to us by FSS in November 1969, we noted that many low-demand items were authorized for stocking in all ten GSA regions, as shown in the following table. Number of orders Number of received during stock items fiscal year 1969 authorized 0 - 5(a) 6 - 60 1,016 61 - 120 1,177 121 - 180 1,200 181 - 240 1,082 Total 4,475 (a) Items with five or less calls are to be reviewed by FSS for conversion to a nonstock status. In December 1969, we began a review of FSS' stocking patterns because it appeared that improvements could be made. In January 1970 FSS inventory management officials advised us that consideration was being given to the awarding of a contract to a commercial firm for a study of stocking patterns. We understand that the primary objective of this pro- posed study is the establishment of optimum levels of stocking of stores items at various locations. Since the proposed study apparently is to cover essentially the same ground as that contemplated by our review, we have decided not to proceed

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