DOD 4140.1-R PDF

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Pursuant to a congressional request, GAO reviewed Department of Defense DOD aircraft parts inventories, focusing on the causes of unrequired inventory growth and how to minimize it. Status : Closed - Not Implemented.

Recommendation : The Secretary of Defense should separately identify assets that are uneconomical to repair and modify DOD regulations to ensure consistent treatment by the military services.

Recommendation : The Secretary of Defense should separately identify unrequired inventory that was obtained in the best interest of the government to ensure that such inventory is properly classified.

Recommendation : The Secretary of Defense should direct the Secretaries of the Air Force and Navy to improve procurement management practices that have contributed to the growth in unrequired stocks. Specifically, the Secretary of the Navy should stop the practice of buying more than the economic order quantity EOQ , unless there is such specific justification in each case as a quantity discount which more than offsets additional holding costs.

Comments : This recommendation should be reevaluated in view of recent inventory policy changes within DOD, that is, issuance of DOD Specifically, the Secretary of the Air Force should stop the practice of initiating purchase requests earlier than required. Status : Closed - Implemented. Comments : The Navy and Air Force reviewed their policies on terminating orders to ensure that they clearly support termination whenever practical.

No other action was taken or planned. Specifically, the Secretaries of the Air Force and Navy should review their policies on terminating orders for unrequired items at all levels to ensure that they clearly support termination whenever practical. Recommendation : The Secretary of Defense should continue to identify unrequired inventory as such and direct the Secretary of the Air Force to cancel efforts to increase the approved force acquisition objective to include an additional year of requirements.

Such a change would mean that inventory managers would not have to consider terminating orders that could have been terminated under current criteria. Skip Navigation. Advanced Search. Publicly Released: Mar 6, Heivilin contact gao. View Report PDF. Agency Affected : Department of Defense. Status : Closed - Implemented Comments : The Navy and Air Force reviewed their policies on terminating orders to ensure that they clearly support termination whenever practical.

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