Inventory Management Centralized ... - United States Army

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).

2 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).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).

3 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).o Updates DA Form 5662 (app B).

4 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.

5 And the army Reserve, unlessotherwise stated. 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.

6 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. 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.

7 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.

8 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)

9 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) 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.

10 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, page 18 Transfers within the army 2 20.