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In the Mexico plant there are processes that are creating bottlenecks. The capacities of these processes have to be increased in order to increase throughput and meet the increasing demand. Two options are available. One is to outsource work on these processes. The other is to add capacity in these processes. The second option would require moving some employees from other jobs and training them to perform the bottleneck processes. But it would give greater control over the processes than the outsourcing option. (Winter, 2005)
The creation of inventory decreases the bottom line. Operational expenses are incurred to create the inventory...
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Common topics in this essay:
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