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DOCUMENT RESUME
04928 - (80195088]
Economies Availatle through Improved Inventory hanagement.
LCD-78-212; B-114k07. January 18, 1978. 20 pp.
Report to Joel W. Solomon, Administrator, General Services
Administration; by Fred J. Shafer, Director, Logistics and
Communications Div.
Issue Area: Facilities and material Management: Requirements for
Equipment, Spare Parts and Supplies (702).
Contact: Loqistics and Communications Div.
Budqet Function: Gengral Government: Gineral Property and
Records Management (804).
Organization Concerned: Federal Supply Service.
The General Services Administration can save millions
of dollars annually 'through improved procedures and practices
for procuring, managing, and supplying inventories.
Recommendations: TheAdministrator of General Services snould:
stress the impcrtancef making shipments direct from vendors to
c~istomers and establis.h a more realistic criterion for screening
and selectinq reqiisitj0ns from user agencies that should be
filled through divel.sion of quantities due in from vendczs;
establish a managemetj.nrorcat'on sTEtem that will require
supervisoru to determine that item ttanagers use the criteria and
arrange direct snipments when they are wore economical; place
greater emphasis on the need for timely cancellaticn or deferral
of procurements; imprQve the usefulness of the overstock with
due-in report; increase the units of issue quantities in the
supply cataloq for low-value items to quantities either
consistent with the minimum commercial standard pack or to
quantities repetitively ordered by customers over a short
timespan; reevaluate current item authorizations for lzrger than
economic order quantity buys to replenish depot stccks° and
restrict future itebi authori7ations for larger than econcmic
order quantity buys to those instance* justified by realistic
projections of cct avings or other measurable benefits.
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