Inventory Management Centralized Inventory …

1 Army Regulation 710 1 Inventory ManagementCentralizedInventoryManagement ofthe ArmySupply SystemHeadquartersDepartment of the ArmyWashington, DC28 November 2016 UNCLASSIFIEDSUMMARY of CHANGEAR 710 1 Centralized Inventory Management of the Army Supply SystemThis major revision, dated 28 November 2016--o Updates responsibilities (para 1-4).o Updates Integrated Materiel Management and Stockage Policy (paras 2-1 through2-24).o Deletes selected Item Management System-Expanded (formerly chap 3, sectionIII).o Updates Secondary Item Management Policy (paras 4-1 through 4-17).o Updates Financial Inventory Management Policy (paras 5-1 through 5-7).o Adds a note to the stratification process (para 5-3).o Deletes Reduced Price Initiative (formerly chap 5 section IV).o Rescinds DA Form 1887 (formerly referenced in paras 5-11 and 5-17).o Rescinds Army use of DD Form 1138-1 (formerly referenced in para 5-13).o Updates Army Prepositioned Stocks policy (paras 6-1 through 6-22).

2 O Updates secondary item metric and data Management policies (paras 7-1 through7-3).o Updates major item identification policy (paras 8-1 through para 8-13,formerly chap 9).o Updates major item float and factors policy (paras 9-1 through 9-7, formerlychap 8).o Updates policy for the standard study number process (paras 10-1 through 10-6).o Updates data interchange policy (paras 11-1 through 11-4, formerly chap 14).o Updates major item system map policy (paras 12-1 through 12-3, formerly chap15).o Updates major item distribution policy (paras 13-1 through 13-18).o Updates Army aircraft distribution, delivery and disposition policy (paras14-1 through 14-14).o Adds chapter on Divestiture of class VII major items (chap 15).o Deletes previous chapter, Total Asset Visibility (chap 16).o Deletes previous chapter, Data Quality Assessment Execution Program (chap17).o Replaces Reduced Price Initiative, with Data Interchange (app B).o Updates DA Form 5661 (app B).

3 O Updates DA Form 5662 (app B).o Replaces Elements in Computing Cost, with War Reserve Secondary Item Process(app C).o Updates Materiel Category and Structure Code (app D).o Replaces, Special Program Requirements, with Major Item Management Guide (appE).o Updates Internal Control and Operational Metrics (app F).o Converts from legacy to Logistics Modernization Program terms and processes(throughout).HeadquartersDepart ment of the ArmyWashington, DC28 November 2016 Inventory ManagementCentralized Inventory Management of the Army Supply System*Army Regulation 710 1 Effective 28 December 2016H i s t o r y . T h i s p u b l i c a t i o n i s a m a j o This regulation is a consoli-dation of several regulations that set pol-i c y a n d p r o c e d u r a l g u i d a n c e f o rm a n a g e m e n t o f s e c o n d a r y a n d m a j o ritems, stockage categories, retention lev-e l s , f i n a n c i a l m a n a g e m e n t , o p e r a t i o n a land repair cycle float, Army war reserve,and the Automatic Return Item This regulation applies tot h e R e g u l a r A r m y , t h e A r m y N a t i o n a lGuard/Army National Guard of the UnitedStates, and the Army Reserve, unlessotherwise stated.

4 During mobilization, theproponent may modify chapters and poli-cies contained in this and exception proponent of this regulation is theDeputy Chief of Staff, G 4. The propo-nent has the authority to approve excep-tions to this regulation that are consistentwith controlling law and regulations. Theproponent may delegate this approval au-t h o r i t y , i n w r i t i n g , t o a d i v i s i o n c h i e fwithin the proponent agency or its directreporting unit or field operating agency, inthe grade of Colonel or the civilian equiv-alent. Activities may request a waiver tothis regulation by providing justificationthat includes a full analysis of the ex-pected benefits and must include formalreview by the activity s senior legal offi-cer. All waiver requests will be endorsedby the commander or senior leader of therequesting activity and forwarded throught h e i r h i g h e r h e a d q u a r t e r s t o t h e p o l i c yproponent.

5 Refer to AR 25 30 for internal control process. Thisregulation contains internal controls andidentifies key internal controls that mustbe evaluated (see appendix F).S u p p l e m e n t a t i o n . S u p p l e m e n t a t i o n o fthis regulation and establishment of com-mand and local forms are prohibited with-out prior approval from the Deputy Chiefof Staff, G 4 (DALO SPS), Washington,DC 20310 improvements. Users areinvited to send comments and suggestedimprovements on DA Form 2028 (Recom-m e n d e d C h a n g e s t o P u b l i c a t i o n s a n dBlank Forms) directly to Director, r m y L o g i s t i c s I n n o v a t i o n A g e n c y( L O I A A P ) , 5 8 7 0 2 1 s t S t r e e t , B u i l d i n g212, Fort Belvoir, VA 22060 Management . AR 15 1 re-quires the proponent to justify establish-i n g / c o n t i n u i n g c o m m i t t e e ( s ) , c o o r d i n a t edraft publications, and coordinate changesin committee status with the ArmyResources and Programs Agency, Depart-ment of the Army Committee Manage-ment Office (AARP ZA), 9301 ChapekRoad, Building 1458, Fort Belvoir, VA22060 5527.

6 Further, if it is determinedt h a t a n e s t a b l i s h e d " g r o u p " i d e n t i f i e dwithin this regulation, later takes on thecharacteristics of a committee, as found inthe AR 15 1, then the proponent will fol-l o w a l l A R 1 5 1 r e q u i r e m e n t s f o r e s -tablishing and continuing the group as acommitteeDistribution. This publication is availa-ble in electronic media only and is in-tended for command levels C, D, and Efor the Regular Army, the Army NationalGuard/Army National Guard of the UnitedStates, and the Army (Listed by paragraph and page number)Chapter 1 Introduction, page 1 Section IPurpose, References and Explanation of Abbreviations and Terms, page 1 Purpose 1 1, page 1 References 1 2, page 1*This regulation supersedes AR 710 1, dated 20 September 2007AR 710 1 28 November 2016iUNCLASSIFIEDC ontents ContinuedExplanation of abbreviations and terms 1 3, page 1 Section IIResponsibilities, page 1 Assistant Secretary of the Army (Acquisition, Logistics and Technology) 1 4, page 1 Assistant Secretary of the Army (Financial Management and Comptroller)

7 1 5, page 1 Chief, National Guard Bureau 1 6, page 1 Deputy Chief of Staff, G 3/5/7 1 7, page 2 Deputy Chief of Staff, G 4 1 8, page 2 Deputy Chief of Staff, G 8 1 9, page 3 Chief, Army Reserve 1 10, page 3 The Surgeon General 1 11, page 3 Assistant Chief of Staff for Installation Management 1 12, page Army Training and Doctrine Command 1 13, page 4 Army Materiel Command 1 14, page Army Special Operations Command 1 15, page 6 Chapter 2 Integrated Materiel Management and Stockage Policy, page 6 Section IIntegrated Materiel Management , page 6 Overview 2 1, page 6 Integrated materiel Management 2 2, page 6 Criteria for assigning item Management codes 2 3, page 7 Interchangeability and substitutability 2 4, page 8 Inactive and dormant item Management 2 5, page 8 Section IINational Stockage Criteria, page 8 Stockage review frequency 2 6, page 8 Part-numbered items 2 7, page 8 Part Number Conversion Program 2 8, page 9 Local purchase items 2 9, page 9 Management determination logic schematic 2 10, page 9 Cost differential 2 11, page 12 Numeric stockage objective and insurance items 2 12, page 13 Diminishing manufacturing sources and materiel shortages 2 13, page 13 Life-of-type buys 2 14, page 13 Assignment of the acquisition advice code 2 15, page 14 Section IIIM ateriel Support Requests, page 14 Supply support requests 2 16, page 14 Stockage alternatives 2 17, page 17 Depot maintenance repair parts support 2 18, page 18 Non-consumable item materiel support requests 2 19, page 18 Section IVTransfers of Assets.

8 Page 18 Transfers within the Army 2 20, page 18 Transfers between the Army and other Services 2 21, page 18 Transfers to allied forces 2 22, page 19 Transfers to Federal agencies outside the Department of Defense 2 23, page 19 Transfers of cryptological materiel 2 24, page 19iiAR 710 1 28 November 2016 Contents ContinuedChapter 3 Inventory Management Control Programs, page 19 Section IComponent Items within Equipment Assemblages, page 19 Assemblage and component policy 3 1, page 19 Managing assemblages and components 3 2, page 19 Section IIPositioning of Stocks, page 20 Secondary item assets 3 3, page 20 Class V 3 4, page 21 Requirements for additional storage facilities and services 3 5, page 22 Section IIIA utomatic Return Items, page 22 Automatic Return Item List code 3 6, page 22 Applicability of automated return items 3 7, page 22 Automated return item policy 3 8, page 22 Automatic return item objectives 3 9, page 23 Automated return item selection criteria 3 10, page 23 Field maintenance level retention criteria for automated return items 3 11, page 23 Automatic return procedures 3 12, page 23 Receipt of automated return items at national/wholesale level 3 13, page 24 Credit for return of Supply Management , Army items 3 14, page 24 Disposition of automated return item components of major items 3 15, page 24 Section IVCentralized Ammunition Management , page 24 Overview 3 16, page 24 Concept 3 17, page 24 Objectives 3 18, page 25 Responsibilities (Outside and Inside the Continental United States)

9 3 19, page 25 Execution (Outside and Inside the Continental United States) 3 20, page 25 Reports 3 21, page 27 Automated tracking 3 22, page 27 Section VSpecial Commodity Control Programs, page 28 Obsolete or excess end items and threat representative targets 3 23, page 28 Management of reusable containers 3 24, page 29 Section VIRecycling Excess Materiel Inventory /Reclamation at the National/wholesale Level, page 32 Defense Logistics Agency Disposition Services reissue process 3 25, page 32 Introduction to reclamation 3 26, page 32 Reclamation roles 3 27, page 32 Reclamation policy 3 28, page 32 Reclamation funding 3 29, page 33 National/wholesale Inventory control point functions for routine reclamation 3 30, page 33 Supply functions at the depot for routine reclamation 3 31, page 36 Life Cycle Management Command functions for priority reclamation 3 32.

10 Page 36 Supply functions at the depot for priority reclamation 3 33, page 37DA Form 7420, Parts Reclamation List 3 34, page 37iiiAR 710 1 28 November 2016 Contents ContinuedChapter 4 Secondary Item Requirements, Inventory and Supply Chain Management , page 40 Section IRequirements and Demand Forecasting, page 40 Inventory categories, approval thresholds and data retention 4 1, page 40 Demand planning, supply planning and data integrity 4 2, page 42 Coverage profile and procurement/repair lead-times 4 3, page 42 Section IIRetention Management , Credit Policy and Supply Chain Metrics/Parameters, page 43 National/wholesale retention policy 4 4, page 43 Credit for assets returned to the national/wholesale echelon 4 5, page 44 Global planning parameters 4 6, page 44 Section IIIA cquisition Strategies and Supply Chain Management , page 44 Acquisition strategies 4 7, page 44 Supply chain Management 4 8, page 46 Section IVProvisioning and Phase-Out Segments of the Item Lifecycle, page 47 Provisioning phase of the item lifecycle 4 9, page 47 Phase-out segment of the item lifecycle 4 10, page 47 Interim contractor support 4 11, page 48 Section VOther Centralized Secondary Item Inventory Management Topics, page 48 Supply performance analyzer 4 12, page 48 Requirements computation for spare engines 4 13, page 48 Item unique identification 4 14, page 48 Non-Army Managed Item Program 4 15, page 48 Counterfeit parts 4 16, page 49 Management of other item manager assets on Army records 4 17, page 49 Chapter 5 Financial Inventory Management , page 50 Scope 5 1.