Logistics Managers Need to Consider Operational Readiness in Setting Safety Level Stocks

摘要

Maintaining a safety level of stock on hand is a form of insurance against unexpected demands or delays in delivery. However, the methods used for determining safety levels do not consider whether the items are essential to carry out a military mission. Inventory management activities increase their effectiveness by ensuring that, within budgetary constraints, sufficient safety levels of low-cost, high-demand items are available to meet demands. However, these items are not necessarily those needed to maintain a high level of readiness. GAO believes that operational readiness should be the prime objective of logistics managers, as well as those responsible for maintaining a ready force, and makes a number of recommendations aimed at making this objective the guiding factor in the requirements determination process. (Author)