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NSIAD-85-59 1 (1985-04-09)

handle is hein.gao/gaobabnpz0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIVISION B-162152 APRIL 9,1985 General Richard H. Thompson Commander, U.S. Army Materiel Command 5001 Eisenhower Avenue Alexandria, Virginia 22333 Dear General Thompson: Subject: 'The Army's Use of Serviceable Returns in Requirements Computationsl (GAO/NSIAD-85-59) We have concluded a limited survey of serviceable returns to the Army wholesale supply level. This survey was initiated to determine the degree of compliance with the recommendations in our prior report entitled Army Can Save Millions Annually by Properly Considering Serviceable Returns in its Requirements Computations (LCD-80-64, May 15, 1980). ] The Department of Defense (DOD) had concurred in that report's recommendation that the Army reduce projected require- ments for materiel by the full amount of forecasted returns of serviceable materiel and directed specific actions by the Army. Our current survey found that the rate of offset to demands as a result of forecasted serviceable returns to inventory control points (ICPs) remains low--zero to 20 percent. BACKGROUND Excess serviceable materiel is materiel requisitioned from the wholesale supply level and received by the requisitioner, but is found to be the wrong item or is no longer needed by the requisitioner. The requisitioner notifies the wholesale supply level that he or she has the excess materiel and is informed to return the materiel to the wholesale supply level, or if the wholesaler has no need for the item, the requisitioner is told to dispose of the item locally. In addition, the wholesaler also records the user's requisition on the demand history file for this particular item. This file forms the bases on which future requirements (393088) 126611