Since 1990, the DoD¿s inventory managemetn system has been considered a high-risk area. It is critical that the military services effectively and efficiently manage DoD's secondary inventory to ensure that the warfighter is supplied with the right items at the right time and to maintain good stewardship over the billions of dollars invested in their inventory. This report reviews the Army's management of secondary inventory and determined: (1) the extent to which on-hand and on-order secondary inventory reflected the amount needed to support current requirements; and (2) causes for the Army having secondary inventory that exceeded current requirements or, conversely, for having inventory deficits. Includes recommendations. Charts and tables.

The Defense Logistics Agency (DLA) procures and manages large supplies of spare parts to keep military equipment ready and operating. This report identified supply chain management as a high-risk area due in part to high levels of inventory beyond what is needed to support requirements and problems in accurately forecasting demand for spare parts. The objectives were to: (1) determine the extent to which DLA's inventory of spare parts reflects the amount needed to support requirements; and (2) identify causes, if applicable, for DLA's having spare parts inventory that does not align with requirements. The report analyzed DLA inventory data for FY 2006 through 2008. Includes recommendations. Charts and tables.