A manufacturing company has several inexpensive items that are critical to the production process. The supply of these items has been depleted several times. Which of the following actions is most likely to reduce stockouts?
Increasing the minimum inventory levels for critical items ensures that there is a buffer stock available to prevent stockouts. This approach is straightforward and effective for items that are inexpensive but critical to the production process. It helps maintain continuous production by ensuring that these essential items are always available when needed, thereby reducing the risk of production delays due to stock depletion.
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. McGraw-Hill Education.
Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
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