While not everyone is on board, the majority of the existing staff believe in Phil's plan for surveying the town, and they are willing to try his approach. This is Phil's first win! Phil now focuses on utilizing the inventory management system that the company has, with the primary objective of minimizing "leakage" of different products (under different product lines) through wastage and thefts.

The company currently has a very large warehouse where the food is stored until it is pulled from the shelves to be delivered to the customers. The company has 10 types of product lines, with each product line having five products, and with each product having ten combinations of color and size. The company has 10 storage racks numbered 1-10. Each rack is responsible for the inventory of each type of product line (thus, 10 product lines in 10 different storage racks). Further, each rack has five shelves labeled A, B, C, D, and E that store each product type within the associated product line. Each shelf is divided into 10 sections, numbered 1-10, that store the product with a specific combination of color and size. For example, Purity Foods has a product line called Soft Drinks that has a product called Diet Pineapple Soda that is of 12-ounce size. This is stored in 5-D-1 (rack 5, shelf D, section 1). Each day, employees perform an inventory for a sample of products. For example, how many Diet Pineapple Sodas does the company have in inventory, and how many should it have based on the computer account? To save time and resources, the company chooses five products daily as its sample.

Phil's Next Task: Stage 3 Now is the time for Phil to decide and report on the sampling technique the company has to choose. Phil wants to use a simple random sampling technique to select the sample. One of the employees suggests using the cluster random sampling technique instead. Based on the information provided, Phil has to choose one sampling technique over another to minimize "leakage". Phil writes his report discussing his choice of sampling technique