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Operations Management Tools & Methods

Smitheford Pharmaceuticals wants to reduce its inventory costs. As a quality manager to Smitheford Pharmaceuticals, explain the meaning of lowering the water level to expose the rocks, on the diagram on this figure, as you would to your management team. How would you keep Smitheford Pharmaceuticals from immediately raising the inventory as soon as an outage occurs? Explain how each rock can cause problems in the production process and how you would help pharmaceuticals to improve processes and reduce inventory.

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Reference

Gaither, N., & Frazier, G. (2002). Operations management (9th ed.). Mason, OH: South-Western.

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