Defense Inventory: Process for Canceling Inventory Orders Needs Improvement

摘要

Inventory management comprises several major functions, including determining what is needed; buying needed items; and storing, maintaining, distributing, and disposing of these items. The military services and the Defense Logistics Agency (DLA) use automated inventory management models that identify the need to place orders when the total inventory falls below a predetermined level. The models also periodically consider whether orders exceed requirements and are candidates for cancellation. After the models identify orders that are candidates for cancellation, the services and DLA use other models or analyses to determine whether canceling the orders is economical. The Department of Defense's (DOD) general process for placing an order and subsequently evaluating the order to determine if it is a candidate for cancellation.