The Defense Logistics Agency (DLA) procures and manages large supplies of spare parts to keep military equipment ready and operating. This report identified supply chain management as a high-risk area due in part to high levels of inventory beyond what is needed to support requirements and problems in accurately forecasting demand for spare parts. The objectives were to: (1) determine the extent to which DLA's inventory of spare parts reflects the amount needed to support requirements; and (2) identify causes, if applicable, for DLA's having spare parts inventory that does not align with requirements. The report analyzed DLA inventory data for FY 2006 through 2008. Includes recommendations. Charts and tables.