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Defense Inventory: Process for Canceling Inventory Orders Needs Improvement

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Report Type Reports and Testimonies
Report Date June 30, 2000
Report No. NSIAD-00-160
Subject
Summary:

This is one in a series of GAO reports on the Defense Department's management of inventory--spare and repair parts and other items that support the military's operations on land, at sea, and in the air. GAO has included DOD's management of inventory on its list of government areas at high risk for waste, fraud, abuse, and mismanagement. As of September 1999, DOD reported that it has about $8.1 billion of inventory on order, $1.6 billion of which exceeded requirements--the amount of inventory that the military indicated it needed to prevent out-of-stock situations. This report reviews inventory on order that exceeded requirements. GAO (1) determines that extent to which orders exceeded requirements when the orders were placed and (2) assesses the processes for canceling orders that exceeded requirements.

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