cage projects which tends to mask the tremendous reduction in inventories of the older contractors. Progress in the managemént of SFO inventories is shown as follows:* 1951 SFO Inventories beginning fiscal year Actual Usage during Fiscal Year Turnover Ratio 1952 1953 1954 16, 269, 231 28, 463, 1364 6. 908 9, 588, 347 12,404,455 ~ 6, 867, 392 13, 854, 705 14,352, 294 ; 20, 542, 156 16.75 10. 74 8.38 0. 72:1 Number Months Investment 1.12:1 1. 43:1 1, 75:19 a ~ Anticipated The present aim is to reduce the investment to a six-month supply or less, thereby accomplishing further reductions in the cost of handling stores inventories. Property Management Meetings Property management meetings with representatives of AEC field offices and of contractor organizations in attendance are held annually at SFO headquarters. Through these bnastritd meetings and through the personal discussions of the most current problemsand policies, a much closer understanding and spirit of cooperation has been developed. These meetings have replaced the previous procedure of the conduct of affairs through a Property Management committee. Special Assistance and Requirements As the Mobilization Planning merged into the period when important materials were becoming scarce and SFO's program was being greatly accelerated, a Defense Requirements Branch was established in the Spring of 1951. This group assumed the planning and execution of the National Production Authority and the Controlled Materials Plan (now Defense Materials System) programs, provided special assistance in obtaining NPA directives, locating scarce materials and supplies, and providing expediting assistance. During the Korean War, many SFO"crash" programs were executed including estab- lishment of permanent facilities in Nevada, construction at Pantex and Rocky Flats, and expanding continental and overseas testing together with research, development and pro- duction activities which were considered to be in the vital or critical category. No essential activity was prevented from accomplishing its mission due to SFO's nal inability to obtain the required material, equipment or supplies. With the expansion of the national economy and stretch-out of the defense production, the pressure in this field has reduced, resulting in a reduction of required personnel to a skeleton staff. moe. ALS * Figures obtained and computed from Finance Division reports entitled "Analysis of Stores Inventory" and "Summary of Stores Transactions." sas anu /4¥ 143