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LCD-79-227 1 (1979-08-08)

handle is hein.gao/gaobaazqe0001 and id is 1 raw text is: Acoutmg~ offic C, Mod,3ed 0q~t*hfe th~ ae Accoun ,:g Office excett On the basis Of specifc apprval by the Office of Congressfonal Relation ... UNITED STATES GENERAL ACCOUNTING OFFICE RELEASED WASHINGTON, D.C. 20548 LOGISTICS AND COMMUNICATIONS DIVISION B-168700 AUGUST 8. 1979 The Honorable John Glenn United States Senate Dear Senator Glenn: In your May 16, 1979, letter, you expressed concern over the Department of Defense's proposed realinement of its material distribution system and asked that we investigate the study on which it was based. This study, referred to as the material distribution system study (MDSS), was done by the American Management Systems, Inc., working as a subcontractor to the Logistics Management Institute. You asked that we analyze the methodology employed in the study and the factual support for the conclusions reached. Our analysis showed that the techniques used in devel- oping savings, costs, and depot capacity data were generally acceptable. However, the study was limited in scope and did not address long-term optimization of the Defense material distribution system. Instead, the study group directed the bulk of the study effort and the recommendations toward developing an alternative structure for the Defense Logistics Agency depot system. The principal scope limitations were that (1) no action be taken involving storage depots geo- graphically colocated with major maintenance activities and (2) one service's material not be stored in another service's depots. DISTRIBUTION SYSTEM STUDIES The need to integrate and consolidate the Defense mate- rial distribution system has long been recognized. In 1975 the Joint Logistics Commanders initiated a Department of Defense material distribution system (DODMDS) study. This study was to examine and recommend alternatives to optimally integrate, consolidate, and standardize military service or agency distribution system functions and facilities where it was clearly beneficial in terms of service and cost. LCD-79-227 (943062) 110295 C, /q noac15 -/J 0 D 111

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