Case Scenario K — Harbor Distribution Supply ChainHarbor Dis…
Case Scenario K — Harbor Distribution Supply ChainHarbor Distribution manages forecasting, inventory, and quality for a regional distribution center. Recent monthly demand was Month 1: 320 units, Month 2: 360, Month 3: 400, Month 4: 380. For a high-volume SKU, annual demand is 18,000 units, ordering cost is $150 per order, and annual holding cost is $6 per unit; average daily demand is 50 units with a 6-day lead time. On a filling line, a control chart of 25 observations shows 6 consecutive points above the mean but within the control limits, and a Pareto/fishbone study attributes 78% of defects to three root causes.A fishbone (Ishikawa) analysis attributes 78% of defects to three root causes. To prioritize corrective action, the manager should apply which TQM principle?