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Air Force Logistics: Improved Backorder Validation Procedures Will Save Millions

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Report Type Reports and Testimonies
Report Date April 20, 1994
Report No. NSIAD-94-103
Subject
Summary:

The Air Force continues to have large quantities of invalid backorders in its wholesale and retail supply systems because they are not detected and canceled when they are no longer needed. GAO and the Air Force have worked together to identify invalid backorders valued at more than $209 million at 17 retail supply activities that the Air Force later canceled. Also, since 1987, the Air Force has suspended a program for automatically canceling backorders when retail supply activities do not respond to quarterly requests to reconcile wholesale and retail backorder records. The suspension has resulted in lost opportunities to cancel millions of dollars worth of invalid backorders each quarter. The failure to identify and cancel invalid backorders was due to (1) a lack of detailed validation guidance, (2) inadequate management oversight and resolution of problems flagged by quarterly backorder reconciliation reports, and (3) the prolonged suspension of the automatic cancellation program.

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