Excess and Surplus Property Continued close attention has been paid to the prompt disposal of excess and surplus property generated from newly completed construction facilities, stocks and components rendered obsolete by research, development and test programs and by the reduction of op- erating inventories within reasonable levels as well as excess generated prior to 1950. This has accounted for the redistribution and disposal of this property bearing a book cost of ap- proximately $6, 000, 000 during the past three years. Inventory Control Reduction of stores inventories and the increase in turnover ratio have been a major accomplishment within SFO during the past three years, and have brought about direct savings to the AEC in the following manner: smaller investment in stocks required; better uti- lization of property on hand; prevents the generation of large quantities of excess and obsolete material which in many instances have to be disposed of at a loss to the AEC; reduction in the cost of storage space; and requires fewer personnel for supply operations. For comparative purposes the following table shows the progress made during the past three fiscal years in the reduction of stores inventory investments for the major cost type operating contractors within SFO. “Analysis of Stores Inventory." This information was taken from financial reports "4« No. of Months Investment by Fiscal Year 1951 1952 1953 Contractor The Zia Company . Los Alamos Scientific Laboratory Sandia Corporation 19.7 14.0 15.3 Silas-Mason Company 12.0 Bendix Aviation Corporation Project Eye 9.0 * Dow Chemical Company Procter & Gamble Defense Corporation Holmes & Narver, Inc. Reynolds Electrical & Engr. Co., Ine. Nevada Company * * 4.4 * * 9.2 11.2 10.8 6.90 7.15 7.10 10.6 5.5 9.00 7.90 * * 6.5 4.00 8.40 6.30 7.8 5. 80 * 5.9 5.90 T *Not in operation TContract terminated , Anticipated average number of months investment for the above-listed contractors for fiscal year ended June 30, 1953, is 6.9 months. & a the Another method of presenting the progress in stock control and inventory utilization is to illustrate the total actual annual usage in relation to inventory investment at the begin- ning of the applicable fiscal year. Because the past three fiscal years cover an expansion period, the total inventory investment has increased and consideration must be given to the fact that inventories are established for anticipated consumption in connection with new rR or