Six Sigma DMAIC Case Study #1 – Perishable Inventory

Fortune 1000 organizations have realized immense success by implementing the Define, Measure, Analyze, Improve, Control (DMAIC) methods made famous by Six Sigma practictioners. These practitioners can maximize their project results (e.g., cost savings and defect reduction) by incorporating real variability and uncertainty in their processes and into their process models or spreadsheets.

Simulation, optimization, and forecasting can be used throughout the DMAIC process. In this case study, a company that sold perishable inventory used Crystal Ball Professional Edition software within the Six Sigma process to create and maintain an optimal balance between lost sales and wasted inventory. In the recent past, this company all too often turned away customers due to unanticipated demand and a lack of inventory. This problem was identified and handed off to a Six Sigma project team for resolution.

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