What is the Gross Inventory Adjustment (GIA) goal as a percent of OH Inventory?

• A. <= 2%
• B. <= 5%
• C. <= 1%
• D. <= 3%

Answer: (A)

Gross Inventory Adjustment measures the total amount of change needed to bring recorded on-hand quantities into agreement with what is physically present. It captures losses, damages, miscounts, mislabeling, and other discrepancies discovered during counting and reconciliation. The aim is to keep these adjustments to a very small portion of what you actually have on hand so the inventory records remain reliable for planning and operations. The standard target is 2 percent or less of on-hand inventory, which reflects a practical balance between accuracy and the cost of counting and investigating discrepancies. When GIA exceeds this level, it flags the need for corrective actions—such as tightening receiving and issuing controls, improving storage and counting procedures, and performing targeted cycle counts to identify and fix root causes like miscounts, shrinkage, or process gaps. The other proposed percentages are either more stringent or looser than typical Navy practice, and thus not the standard goal.