manage the inventory levels of direct material parts that go into finished goods. It is not uncommon to run out of inventory when production and demand is unpredictable. We pareto chart our stockouts to determine the frequency and commonality of parts that we run out of. It helps us to determine if inventory levels need to be adjusted based on the stockout frequency, or if a stockout was a “one off”.? Discuss this statement briefly and what other B7 quality improvement tools can be used and why?
