Distribution of medical supplies to the military services was hindered by excessive and old inventories, limited Defense Logistics Agency (DLA) monitoring of the diverse DOD purchasing and delivery systems, and weaknesses in DLA's centralized supply system. If support functions in the Pacific were consolidated, costs could be reduced and controls improved. Moreover, high medical supply inventories throughout the system increase cost and handicap control over perishable items. Overseas depots stocked up to two and three times authorized level. GAO believes that the high inventories and inventory control weaknesses contribute to high rates of loss for perishable supplies. The Secretary of Defense should reduce medical supply inventories to authorized levels and improve control over perishable items; improve control over military services' local purchases by uniform coding, expanded monitoring, and a DOD-wide directory of nonstandard medical supplies; and reduce transportation costs by finalizing plans to limit unnecessary out-of-area shipments from DLA depots. Agency comments, tables, footnotes, and a list of agency abbreviations are included. Related data and a letter are appended. (Author summary modified)