**GAO-09-103**                      Published: Dec 12, 2008. Publicly Released: Dec 17, 2008.                  

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## Highlights

Since 1990, GAO has designated the Department of Defense's (DOD) inventory management as a high-risk area. It is critical that the military services and the Defense Logistics Agency effectively and efficiently manage DOD's secondary inventory to ensure that the warfighter is supplied with the right items at the right time. It is also imperative that they maintain good stewardship over the billions of dollars invested in their inventory. GAO reviewed the Navy'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 Navy's having secondary inventory in excess of current requirements or, conversely, for having inventory deficits. To address these objectives, GAO analyzed Navy secondary inventory data (spare parts such as aircraft and ship engines and their components and accessories) from fiscal years 2004 through 2007.

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## Topics

National Defense

Comparative analysisCost analysisData collectionData integrityDefense economic analysisFederal regulationsInteragency relationsInventoriesInventory controlInventory control systemsMilitary forcesMilitary inventoriesMilitary materielNaval procurementProgram evaluationProgram managementProperty and supply managementRequirements definitionSpare partsStrategic planningCorrective actionExecutive agency oversightSupply and demand