1. A method of producing a printed image comprising: identifying with a controller an inoperable inkjet in a printhead; identifying with the controller a first raster in image data corresponding to the inoperable inkjet in the printhead; applying with the controller a first modification to the image data in a first swath of the image data to generate a first modified swath in the image data to compensate for the inoperable inkjet in a printed image, the first swath including the first raster corresponding to the inoperable inkjet and a plurality of rasters in a region of the image data around the first raster, the application of the first modification further comprising: applying with the controller a first tone reproduction curve (TRC) to the first raster corresponding to the inoperable inkjet; and applying with the controller a second TRC to a plurality of rasters in the first swath not including the first raster; applying with the controller a plurality of modifications to each swath in a plurality of swaths in the image data to generate a plurality of modified swaths in the image data, each swath in the plurality of swaths including a plurality of rasters that do not include the raster corresponding to the inoperable inkjet; and operating with the controller a plurality of inkjets in the printhead with reference to the image data including the first modified swath and the plurality of modified swaths to form a printed image on an image receiving surface.