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Navy Supply: Improved Backorder Management Will Reduce Material Costs

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Report Type Reports and Testimonies
Report Date March 19, 1993
Report No. NSIAD-93-131
Subject
Summary:

Despite Navy validation processes designed to detect and cancel unneeded requirements, invalid backorders continue to be overlooked during validation checks because some field activities do not follow required validation procedures. When invalid backorders go unnoticed, the Navy ends up wasting money buying, repairing, transporting, and storing parts that it no longer needs. The Navy's practice of exempting whole categories of backorders from the validation process also prevents many invalid backorders from being identified and canceled.

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