Problem
The Morrison Company develops and manufactures radio frequency identification tags (RFID) known as "smart labels" for the retail and pharmaceutical industries. RFID technology is a fast-growing and increasingly competitive industry. Sales have risen dramatically over the past year and production levels have had to increase to meet monthly and quarterly shipping targets. However, the increase has exacerbated existing manufacturing problems and has led to increased shipping delays and inadequate inventory on hand. In addition, sales to pharmaceutical companies are increasing while sales to retail companies are much lower than forecast. You must address the short-term problems quickly and devise a long-term solution for improving the company's operational capabilities
Task
Analyze and address the operational issues a diverse product mix requires. Take into account the different manufacturing processes. What inventory policy would you suggest? Be specific and back up your recommendation with facts from the case.