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Defense Inventory: Applying Commercial Purchasing Practices Should Help Reduce Supply Costs

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Report Type Reports and Testimonies
Report Date Aug. 6, 1993
Report No. NSIAD-93-112
Subject
Summary:

The Pentagon's materiel inventory--the world's largest--includes spare parts and operating supplies for airplanes, ships, tanks, and other complex weapons systems. This report examines the cost considerations underlying the Defense Department's (DOD) inventory decisions for these items. GAO discusses DOD's inability to buy quantities of secondary items that deliver the lowest total cost for ordering and holding. GAO also identifies commercial inventory practices that have substantially cut supply costs at several private sector firms.

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