TE 5.15 Inventory Accuracy Categories.docx

SP3300-11-R-0006

TECHNICAL EXHIBIT 5.15

INVENTORY ACCURACY CATEGORIES

Inventory Accuracy Categories

1) Validation of GDS recorded quantity on-hand to actual quantity on shelf.

2) Validation of GDS recorded location to actual location where material is found and validation of required storage location based on hazard class of material.

3) Validation of GDS record of ownership to ownership markings (Government owned) on material in location, and validation of material labeling (29CFR requirements) and identification (NSN/LSN, U/I, Nomenclature).

Errors in each category will be calculated against the sample size of line items (NSN/LSN’s) to determine percentage of accuracy (sample size minus errors, divided by sample size, times 100). Categories may be used singularly or in combinations during monthly random samples. All categories will be used during the annual inventory. If combinations are used, the average of the sum of the results by category will be the final record of inventory accuracy.

Sample Calculation A:

Sample size = 50 Errors in Category 1 = 6

(50-6)/50*100 = 88%

Result: Inventory Accuracy = 88%

Sample Calculation B:

Sample size = 50 Errors in Category 1 = 6, errors in Category 2 = 3, errors in Category 3 = 1

(50-6)/50*100 = 88% (50-3)/50*100 = 94% (50-1)/50*100 = 98%

88 + 94 + 98 = 280

280/3 = 93.3%

Result: Inventory Accuracy = 93.3% Inventory Accuracy = 93.3%