A large construction company has recently won the contract for routine inspection and maintenance of the Channel Tunnel linking the UK to France. Obviously, routine maintenance and repair work, unless carefully planned, will have adverse consequences on traffic flows through the tunnel and on operating revenue. You have been asked to investigate policies that might be appropriate for stock control in terms of the building and construction materials that will be required to support these routine maintenance and repair operations. Effectively you have been asked to investigate appropriate policies for such items as cement, steel girders, rail track, electrical wiring and the like.

Draft a management report discussing in detail how the Pareto analysis may help with this situation. Provide a guideline on how the analysis may be carried out.