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Analyzing The Objectives Of The Department Of Defense

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Background of the Problem The objective of the Department of Defense (DOD) is to effectively and efficiently manage inventory to reduce unnecessary spending on excess or unneeded inventory. The DOD inventory management system is comprised of the four military departments (Army, Navy, Air Force, Marine Corps) and the Defense Logistics Agency (DLA) whose responsibility is handling approximately $4.8 billion secondary inventory items valued at $93.3 billion dollars for end of the fiscal year (FY) 2016 (ODASD(SCI), 2016). Although these components have made significant improvements in inventory management since 1990, there are initiatives and goals that the DOD must continue to achieve to decrease the amount of expenditures. In 2010, the Comprehensive Inventory Management Improvement Plan was developed as guidance to DOD to improve inventory management. This plan was implemented to improve “the inventory management systems of the Military Departments and the Defense Logistics Agency with the objective of reducing the acquisition and storage of secondary item inventory that is excess to requirements” (OASD(L&MR), 2010, p. 1-1). …show more content…

These components “provide the material support and services needed to sustain all military operations directed by the President, Congress and the Secretary of Defense” (OASD(L&MR), 2010, p. 1-1). Inventory is maintained in the private and public sectors to fulfill the customer demands of future products and services. Moreover, demand forecasting plays a key role in the management of inventory. Therefore, accurate forecasts are essential for effective and essential

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