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Supply Chain Glossary - V

Supply Chain Glossary - V

visual review system

A simple inventory control system where the inventory reordering is based on actually looking at the amount of inventory on hand. Usually used for low-value items, such as nuts and bolts. See: two bin inventory system.

A term used by J.M. Juran to describe his use of the Pareto principle in quality management, which he first described in 1950. (The principle was used much earlier in economics and inventory control methodologies.) The principle suggests that most effects come from relatively few causes; that is, 80% of the effects come from 20% of the possible causes. The 20% of the possible causes are referred to as the "vital few"; the remaining causes are referred to as the "useful many." When Juran first defined this principle, he referred to the remaining causes as the "trivial many," but since no problems are trivial in quality assurance, he changed it to "useful many."

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