Operations Management Tools & Methods
500-600 words – APA Format – At least 2 references with in text citations.
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.
Reference
Gaither, N., & Frazier, G. (2002). Operations management (9th ed.). Mason, OH: South-Western.
Solution Preview
In order to ensure that Smitherford Pharmaceuticals does not increase the inventory immediately after the outage, it will be my priority to ensure that I carry our a forecast on a weekly basis. I will also ensure that proper planning and analysis on outage is carried out for the multichannel business. I will also work to ensure that there is no increase in stock. I will achieve this by ensuring that I elaborate the link between stock and vendors.
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