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As organizations grow historically over a period of time, certain systems and practices that were once effective and desirable become counterproductive in a changed environment. Hence it is essential to periodically examine the systems and practices and make the required changes. A change in the top leadership provides an opportunity to do this.

Inventory levels are always a worry for top management and rightly so because high inventory levels block up operating funds and hence add to costs. There are two types of finished goods inventory levels. The inventory levels of MTS products exist awaiting orders from customers. Some of these MTS products are slow moving and can be shifted to the MTO category. However this needs to be done in consultation with the customers of these products so that they are not inconvenienced. To simply reduce the level of the MTS products can adversely affect customer service levels, because of stock outs.......

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Title: Operations Management Principles Db 1
Approximate Word Count: 855
Approximate Pages: 4 (250 words per double-spaced page)

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