“If the supplier is not meeting the customers’ needs by dropping below the minimum inventory level that is agreed upon (running in the red), extra steps must be taken to correct the situation, running to the maximum inventory level (i.e.. The green zone)”
“If the customer is not complaining, this may be a situation where the minimum inventory level has been set unnecessarily high initially to make both the customer and the supplier comfortable with the system. It is recommended that a pull loop be establi