Air Force Inventory Procedures

The goal of the Air Force inventory management procedures is to “balance support goals and total materiel management costs in determining the best support alternatives for meeting customer needs.” It is important to use sound inventory practices to maximize customer support while minimizing inventory costs.

To establish an effective stock replenishment, the organization relies on historical data. Over the years, numerous analytical studies have shown that past demand is often the best predictor of future demand. Therefore it makes sense to use historical customer demand data when determining the optimal range (what items to stock) and depth (how many items to stock) of stock for items with past customer demand.

There is a minimum quantity that must be on hand for each item that is stocked in the warehouse. When an asset is ordered, the supply system uses an inventory pull method for resupply. A “pull system” sends requisitions to a supplier source, thereby “pulling” inventory from the source. When the inventory position is less than or equal to the reorder point and nothing prohibits the automatic requisitioning (i.e. funds constraints), then requisitions of the appropriate order size will be automatically submitted to the source of supply.

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