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PLRD-83-11 1 (1982-10-28)

handle is hein.gao/gaobabmrj0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE J Iq 3 WASHINGTON, D.C. 20548 PROcUKMEmor. Lmatmes. OCTOBER 28,1982 AND RADINUS DIVISION General Donald R. Keith Commanding General, Army Materiel Development and Readiness Command 119803 Dear General Keith: Subject: ,The Army Has Not Effectively Used Vertical Inventory Management Techniques'(GAO/PLRD-83-11) We have surveyed vertical inventory management techniques in the military services. We found that the Air Force and Navy have implemented vertical management controls over large segments of their inventories, but the Army has done little to implement ver- tical management. The Army's principal attempt at vertical management is the Selected Item Management System-Expanded (SIMS-X). However, the Army has not achieved the goals of SIMS-X. This conclusion is based on our work at the Deputy Chief of Staff, Logistics (DCSLOG); the Materiel Development and Readiness Command (DARCOM); the Troop Support and Aviation Readiness Command (TSARCOM); and Fort Campbell. BACKGROUND Under vertical management, a single manager maintains world- wide control, ownership, and visibility over all inventories at both the wholesale and retail levels. Advantages include higher material readiness, improved supply responsiveness, decreased in- ventories, and lower administrative costs. Army Regulation 710-1 states that SIMS-X: --Implements Office of the Secretary of Defense directives concerning vertical and critical supply management of secondary items. --Gives the wholesale item manager visibility of assets and requirements for selected items at the retail supply level. --Applies to both stock fund and appropriated items. (943133) 0 ', 11