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Inventory Management: Army Needs To Reduce Retail Level Excesses

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Report Type Reports and Testimonies
Report Date Sept. 2, 1987
Report No. NSIAD-87-197
Subject
Summary:

GAO examined the Army's procedures for controlling excess stocks of secondary items to determine whether retail installations were: (1) reporting excess items to the National Inventory Control Point (NICP) for subsequent redistribution to other facilities; (2) retaining the items; (3) redistributing them to another installation; or (4) disposing of them in some other manner.

GAO found that: (1) installations were not reporting excess stocks to NICP; (2) excess items at six major Army command installations increased from $85.1 million in 1984 to $155.3 million in 1986; (3) unreported excess at two of the 14 installations it examined increased from 43 percent and 29 percent in 1984 to 75 percent and 74 percent, respectively, in 1986; (4) installations failed to report excess items because they had improperly retained them for direct exchange or for management purposes; and (5) NICP managers were often unaware that items which were in excess at one location were in short supply at others.

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