Accession Number : ADA291077

Title :   Defense Supply Inventories Contain Nonessential and Excessive Insurance Stocks.

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

PDF Url : ADA291077

Report Date : JAN 1995

Pagination or Media Count : 25

Abstract : The Department of Defense (DOD) stocks hundreds of millions of dollars of what it calls insurance items to ensure that the operational capability of a weapon system is not compromised. These items are mission essential spare parts and supplies that are not expected to fail through normal usage. They include aircraft parts such as doors, rudders, and ejection seats. DOD regulations state that only one replacement unit of an item may be stocked for insurance purposes. A A Review was undertaken of the Navy's and the Defense Logistics Agency's (DLA) management of insurance items. Its objectives were to determine if insurance stocks were limited to: (1) mission essential parts and (2) one replacement unit as required by DOD regulations. DOD inventory control points are responsible for managing insurance items. The Review was performed at the Aviation Supply Office (ASO), one of two Navy inventory control points, and the Defense Industrial Supply Center (DISC), one of six DLA inventory control points. As of March 1994, ASO managed insurance inventories valued at $193 million and, as of April 1994, DISC managed insurance inventories valued at $3 million.

Descriptors :   *LOGISTICS MANAGEMENT, *INVENTORY CONTROL, MILITARY SUPPLIES, DEPARTMENT OF DEFENSE, MATERIEL, MILITARY REQUIREMENTS, DEFENSE SYSTEMS, COST EFFECTIVENESS, WEAPON SYSTEMS, AERONAUTICS, REPLACEMENT, INVENTORY, EJECTION SEATS, SUPPLIES, INSURANCE, REGULATIONS, SPARE PARTS, AIRCRAFT DOORS.

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

Distribution Statement : APPROVED FOR PUBLIC RELEASE