Learning Team Reflection Chase Strategy
Learning Team Reflection-Chase Strategy
Learning Team B
OPS/571 Operations Management
May 12, 2015
Dr. Christine Fuselier
Learning Team Reflection-Chase Strategy
The chase strategy matches supply and output with fluctuating demand. Employees are hired or laid off according to demand rates. Chase strategy is most suitable when demand is unstable and there is little to no inventory. In order to match the companies demand, it must produce only enough goods to meet or match the demand for goods (Hamelett, 2015). The chase strategy offers numerous benefits such as: saving money to purchase parts or raw materials, maintaining low inventory, and cutting inventory costs and stored inventory in stock. A successful chase strategy requires access to employees who are knowledgeable or easily trained as order volumes increase; therefore it utilizes overtime work, subcontractors, and part-time workers to meet demand (Encyclopedia of Business, 2015). A major advantage of using the chase strategy is ample flexibility to meet demand fluctuations.
Companies that use the chase strategy
A company that employs the just-in-time (JIT) production concept will use the chase strategy. Think of this strategy in terms of a Pizza Hut restaurant, which produces pizzas only when a customer orders. Although Pizza Hut is not hiring or firing employees; it is matching the actual production with customer demand. McDonalds also prepares meals once the order is made to meet the demand of the customer. Companies in the fast food industry have a pattern of employing hourly workers, part-time workers, and allowing overtime when necessary to meet demand fluctuations. Demand matching companies, or companies where the labor force must meet the demand, also use the chase strategy. This example would be the automobile industry. Automobiles depreciating rapidly and can only be stored for a short period. The cost of insurance, taxes, and warehousing can cost the company money if they are not
Learning Team B
OPS/571 Operations Management
May 12, 2015
Dr. Christine Fuselier
Learning Team Reflection-Chase Strategy
The chase strategy matches supply and output with fluctuating demand. Employees are hired or laid off according to demand rates. Chase strategy is most suitable when demand is unstable and there is little to no inventory. In order to match the companies demand, it must produce only enough goods to meet or match the demand for goods (Hamelett, 2015). The chase strategy offers numerous benefits such as: saving money to purchase parts or raw materials, maintaining low inventory, and cutting inventory costs and stored inventory in stock. A successful chase strategy requires access to employees who are knowledgeable or easily trained as order volumes increase; therefore it utilizes overtime work, subcontractors, and part-time workers to meet demand (Encyclopedia of Business, 2015). A major advantage of using the chase strategy is ample flexibility to meet demand fluctuations.
Companies that use the chase strategy
A company that employs the just-in-time (JIT) production concept will use the chase strategy. Think of this strategy in terms of a Pizza Hut restaurant, which produces pizzas only when a customer orders. Although Pizza Hut is not hiring or firing employees; it is matching the actual production with customer demand. McDonalds also prepares meals once the order is made to meet the demand of the customer. Companies in the fast food industry have a pattern of employing hourly workers, part-time workers, and allowing overtime when necessary to meet demand fluctuations. Demand matching companies, or companies where the labor force must meet the demand, also use the chase strategy. This example would be the automobile industry. Automobiles depreciating rapidly and can only be stored for a short period. The cost of insurance, taxes, and warehousing can cost the company money if they are not
References: Barnett, M. (2015, May 11). Academia.edu. Retrieved from http://www.academia.com/4380606/Chase_Strategy Encyclopedia of Business. (2015). Aggregate Planning. Retrieved from http://www.referenceforbusiness.com/management/A-Bud/Aggregate-Planning.html Hamelett, K. (2015, May 11). What are the strategies used in production planning & scheduling? Retrieved from http://www.smallbusiness.chron.com/strategies-used-production-planning-scheduling-1808.html Jacobs, F. R., & Chase, R. B. (2011). Operations and Supply Chain Management (13th ed.). New York, NY: McGraw-Hill.