[Code of Federal Regulations]

[Title 41, Volume 2]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 41CFR101-27.101]



[Page 118]

 

           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT

 

          CHAPTER 101--FEDERAL PROPERTY MANAGEMENT REGULATIONS

 

PART 101-27_INVENTORY MANAGEMENT--Table of Contents

 

                  Subpart 101-27.1_Stock Replenishment

 

Sec. 101-27.101  General.





    Each agency shall establish and maintain such control of personal 

property inventories as will assure that the total cost involved will be 

kept to the minimum consistent with program needs. For purposes of stock 

replenishment, inventories may be considered to be composed of active 

inventory which is that portion carried to satisfy average expected 

demand, and safety stock which is that portion carried for protection 

against stock depletion occurring when demand exceeds average expected 

demand, or when leadtime is greater than anticipated.

    (a) In establishing active inventory levels, consideration shall be 

given to the average demand of individual items, space availability, 

procurement costs, inventory carrying costs, purchase prices, quantity 

discounts, transportation costs, other pertinent costs, and statutory 

and budgetary limitations.

    (b) In establishing safety stock levels, consideration shall be 

given to demand and leadtime fluctuations, essentiality of items, and 

the additional costs required to achieve additional availability.



[29 FR 15997, Dec. 1, 1964]