Accession Number : ADA139887

Title :   Defense Logistics Agency Could Better Identify and Cancel Unneeded On-Order Material.

Corporate Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIV

PDF Url : ADA139887

Report Date : 10 Jan 1984

Pagination or Media Count : 19

Abstract : To carry out inventory management at its supply centers, DLA has established the Standard Automated Material Management System (SAMMS). This connects the centers' distribution, requirements, contracting, and financial subsystems and provides necessary data for uniformly managing DLA's stock fund inventories. DLA has established procurement cycles for items based on value and demand for them. Procurement cycles included in SAMMS are expressed in months and are derived using economic order quantity computations. Our primary objective was to determine whether DLA's procedures and practices for identifying and canceling unneeded on-order material were effective and whether they contributed to unnecessary inventory investment and/or procurement costs. We monitored the following activities between July 1982 and April 1983: DLA, Cameron Station, Virginia; The Defense Industrial Supply Center (DISC), Philadelphia, Pennsylvania, and The Defense Electronics Supply Center (DESC), Dayton, Ohio. We reviewed material management policies and procedures included in DLA's Material Management and Supply Operations Manuals. The procedures are applicable at all centers where supply transactions are processed by SAMMS.

Descriptors :   *Logistics management, *Inventory control, *Supply depots, Distribution, Stockpiles, Military requirements, Military supplies, Logistics support, Acquisition, Procurement, Costs, Finance, Economic analysis, Contracts, Industries, Department of Defense

Subject Categories : Administration and Management
      Economics and Cost Analysis
      Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE