Dynamic Nature of Quality Costs The discovery that trade-offs among quality
cost categories can be managed differently from what is implied by the relationships
portrayed in Exhibit 15-5 is analogous to the discovery that inventory cost trade-offs
can be managed differently from what the traditional inventory model (EOQ) implied.
Essentially, what happens is that as firms increase their prevention and appraisal costs
and reduce their failure costs, they discover that they can then cut back on the prevention
and appraisal costs. What initially appeared to be a trade-off turns out to be
a permanent reduction in costs for all quality cost categories. Exhibit 15-6 displays