Commodities are assigned to each of these sections by Federal class of supply and each of the functions mentioned are performed by the sections, which are staffed with requirements specialists and property supply clerks trained in the particular Federal classes of supply assigned thereto.

The Supply Control Section and the Logistics Compilations Section are the coordinating agencies within the group. Their aim is to insure uniform application of supply control policies and machine methods and procedures by the five commodity sections.

The adjutant and headquarters detachment are purely administrative.

The group's most important function is the determination of command control levels or requisitioning objectives.

EUCOM REQUISITIONING OBJECTIVES

The European Command is authorized a requisitioning objective of 180 days and chart III illustrates the make-up of this level (chart III). Our objective is to stock 60 days of supply in command depots, 30 days of which is the reserve quantity below which our stocks must not fall.

COMPOSITION OF REQUISITIONING OBJECTIVE

EXPRESSED IN DAYS OF SUPPLY

The order and shipping time to the European Command normally consumes 120 days, which represents stock on requisition, and this added to the stockage objective of 60 days equals the requisitioning objective of 180 days. I want to emphasize one thing, and that is that we do not stock 180 days of supply. We stock 60 days of supply and the remaining 120 days is stock on order in the pipeline.

This must be translated from days of supply to quantitative control levels for every item authorized for issue, and this is the key to our entire requirements and requisitioning process. Many elements are involved in establishing a control level or requisitioning objective. They are:

(a) Published replacement factors and consumption rates.

(b) Issue experience.

(c) Projected troop strengths.

(d) Population of major items of equipment.

(e) Other elements-annual maneuvers, seasonal demands, and temporary staging areas.

(f) Judgment and common sense.

I mentioned that we use published replacement factors. We have a replacement factor in Department of the Army publications for every item which we requisition. We use this each time we initially establish a level.

We accumulate issue experience through the medium of quarterly stock analyses. Issue experience is contained in these analyses for every item of quartermaster supply. We accumulate issue experience by month and by quarter as far back as the machines go, and that is 4 years.

DETERMINATION OF CONTROL LEVELS

As the troop strength of the command is increased or decreased we must revise our control levels accordingly. As the population of major end items is decreased or increased we must decrease or increase our control levels for accessories, components, and spare parts accordingly.

We do not have the final say on control levels. All new levels and changes to control levels are recommended monthly to the Department of the Army (OQMG) for approval. When approved, the revised level becomes the established level.

Closely related to the determination of control levels is the determination of requirements. Intelligent requirements planning is the result of proper control levels.

COMPUTATION OF REQUIREMENTS

To compute requirements for an item, a formula which is readily adaptable to electrical accounting machines is employed. We consider quantities of the item on hand and due-in as assets, and the control level and dues-out, if any, as liabilities, and the difference is the requirement for the item.

Major Whalen, of my staff, will explain the details of this operation to you at the conclusion of my talk.

Önce requirements are determined, command requisitions are prepared for submission to the Oversea Supply Division, NYPE. Major Whalen will likewise discuss the manner in which we have adapted the use of electrical accounting machines to the requisitioning process. I wish to briefly cover the frequency of submission of requisitions, which is illustrated on this chart (chart IV).

CHART IV.-Composition of requisition cycles employed by Quartermaster Division, EUCOM

FAST-MOVING ITEMS REQUISITIONED MONTHLY

We employ four requisition cycles in this command and submit requisitions monthly, quarterly, semiannually, and annually. Fastmoving items with a high consumption rate, e. g. subsistence, expendable stationery, and office supplies, etc., are requisitioned monthly.

You will note that the requisitioning objective and our levels and order and shipping time are identical to the days of supply expressed in chart II. For the item of soap in the illustration, the requisitioning objective of 180 days (3,000,000 pounds) consists of the operating level (500,000 pounds), the minimum level (500,000 pounds), and our pipeline stock of 2,000,000 pounds. Now if the troops in the command used 500,000 pounds of soap every month we would requisition that quantity each month, have the minimum level of 500,000 pounds on hand at all time and have 2,000,000 pounds in the pipeline; however, as you will see later this morning, these figures will vary from month to month, since during some months troops may consume 26 or 27 days of supply and in other months 33 or 34 days of supply.

All items are not requisitioned monthly, however, and in this respect we must deviate from the ground rules laid down in the chart on the opposite board (chart III). We do not deviate in principle, because to requisition less frequently than each month, we must increase the number of days supply in the operating level sufficiently to take up the slack between requisitioning periods to prevent exhausting stocks during these periods.

SOME FAST-MOVING ITEMS REQUISITIONED QUARTERLY

Fast-moving items with a moderate consumption rate, such as items of clothing and organizational equipment, are requisitioned quarterly. We submit a requisition each quarter for 36 pairs of shoes, low quarter, size 9B. We submit four requisitions a year to the Oversea Supply Division for this item rather than requisition 3 pairs 12 times each year. We cut down the number of requisitions, and the processing at the port and depots in the States by two-thirds.

SLOW-MOVING ITEMS REQUISITIONED SEMI-ANNUALLY OR ANNUALLY

Slow-moving items with a low consumption rate are requisitioned semiannually. For laundry-marking outfits our operating level is 18 and we requisition that quantity twice a year rather than 3 each 12 times a year.

Slow-moving items with an infrequent demand such as extra large and extra small sizes of clothing are requisitioned annually. For shoes, low quarter, tan, size 15E, we requisition 36 pairs once a year rather than requisition 3 pairs each month. When we requisition 36 pairs of shoes we requisitioned 3 cartons of shoes and if we requisitioned 3 pair each month, we would be requisitioning less than a case lot of 12 pairs.

Finally, the Quartermaster Stock Control Point is responsible for the distribution of all Quartermaster supplies received at European ports of entry at Bremerhaven and on the French coast.

Ocean and supply manifests are air mailed by the New York port to the Rhein-Main Air Base and delivered by courier to the Requirements and Distribution Group. Within 24 hours after the receipt of manifests, distribution orders are dispatched to the port and it is obvious to you that the port must have their instructions prior to the docking of the vessel.

The objective of port distribution is twofold: (1) To effect the orderly routing of supplies received; (2) to maintain a proper balance of stocks in command depots.

Continuing action must be taken to maintain stocks in balance between depots, and it is usually more economical, from a traffic management viewpoint, to effect proper balance from stocks arriving at Bremerhaven.

I have endeavored to brief you on our more important functionscontrol levels, requirements, requisitions, and distribution. I know I have been brief but time would not permit being otherwise. Are there any questions?

Mr. BONNER. Suppose we hear the entire briefing and then we will have a discussion of points for development.

STATEMENT OF MAJ. DONALD E. WHALEN, CHIEF, LOGISTICS COMPILATIONS SECTION, REQUIREMENTS AND DISTRIBUTION

GROUP

Major WHALEN. Colonel Flynn has pointed out that we are utilizing the most modern equipment in the performance of our stock accounting and reporting functions.

These devices are known as punched-card electric accounting machines. Some of you possibly are acquainted with their utilization, and what results can be obtained from them. However, I would like to take a few minutes to review the basic principles of their operation in order that we all may be on common ground for their further discussion.

When electric accounting machine equipment is demonstrated, very frequently the mistake is made of rushing in and observing the machines without any explanation of the theory of their operation.

This theory is exceptionally simple contrary to common belief: Usually a bookkeeping entry or transaction must be reflected in several records and/or reports. As long as this transaction is merely typed or written on any ordinary piece of paper-this information must be transcribed manually each time the transaction is to be reflected in a different record or report.

However, if we take these basic documents, and record all of the information ultimately required concerning these transactions in the form of punched holes in a uniform sized card similar to this one, we can utilize the principles of the player piano and have this information automatically (chart V).