Below is an overview of how materials move through the supply chain. For each set of parties listed you’ll also see a loss or defect rate associated with that portion of the supply chain. a. Suppliers – 0.4% of all materials delivered are unacceptable for use
b. Manufacturing – 0.7% of all kitchen sets produced defective and are thus not shipped
c. Distribution – 1.1% of all items shipped are either lost, stolen, or damaged in transit
d. Retail Store – 1.2 % of all the items that are accepted by the retail store are either stolen or damaged in the store, and are thus unavailable for sale.