About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

117528 1 (1979-07-20)

handle is hein.gao/gaobacxud0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE R OOM 261, 415 FIRST AVENUE NORTH 'SEATTLE, WASHINGTON 98109 .JUL -0 1979 Captain John H. Boyd, Jr. Commander 117528 Puget Sound Naval Shipyard Bremerton, Washington 98314 4iDear Captain Boyd LM117528 We recently completed a urvey of the procurement process at the Naval Supply Center Puget Sound (SupplyCanter) and the Puget Sound Naval Shipyard (PgSS) This included procedures for determining needs, making the purchase and receiving and controlling material acquired. We interviewed responsible officials and made a limited test of procurement transactions. * Our survey indicated that materials for PSNS shop stores inventories could be obtained in a more efficient manner. Also, PSNS did not receive a refund or credit for containers returned to a vendor, POTENTIAL SAVINGS THROUGH CONSOLIDATION OF SHOP STORES PURCIASES Our survey showed that cost savings might be achieved in the pro- curement of non-standard stock items by requisitioning larger quantities or consolidating purchase actions. Repetitive purchases are made in relatively small quantities, thereby increasing the workload of the Supply Center and minimizing the opportunity to obtain lower prices through quantity discounts and increased competition. We estimate that production shops consume about $8 million worth of non-standard stock material each year. Over 12,000 items are carried in shop stores inventories, and these items are generally reordered 4 to 5 times a year, indicating that the Procurement Department is processing at least 50,000 purchase requisitions a year for these items. The PSNS'automatic data processing system for shop stores inven- torits, which repeatedly generates small quantity purchase requisitions, might be used to consolidate requisitioning quantities. A PSNS official said that shop store reorder quantities are based on a complex formula . which considers lead time, inventory storage cost, risk and many other factors. We found, however, that the economic order quantity used'in the formula did not consider lower costs attainable throu h uantity buying, I I I SA? '950526)

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most