Roger Collins, Shyla Young, Laura Plum, Sonia Garcia, Keshawn Cupid, Jakota Rivas
OPS 571
March 6, 2014
Luanne Arredondo
Production Planning Strategies There are three strategies in production planning: the chase strategy, the stable workforce-variable work hour’s strategy, and the level strategy. Businesses can choose one or more of these. When a business uses one of these strategies it is called a pure strategy and when it uses two or more it is called a mixed strategy (Jacobs & Chase, 2011). Team C reflected upon the chase strategy, identified three companies that use the chase strategy, and the challenges of using this strategy.
Chase Strategy
Companies This strategy can be successful for certain types of companies. A catering operation would benefit from not having a full time service staff, especially during slow seasons. When business picks up the caterer can simply hire service staff through a temp agency. Construction companies general operate under the chase strategy as well, hiring workers for big jobs and laying them off when the job is complete. The chase production plan is when demand changes or fluctuates throughout the year. The production is “chasing” the demand needs of the customers. An example of the chase strategy of the production plan would be farmers who use migrant workers to pick crops. The product demand influences are the growing cycle, water scarcity, weather conditions, market needs, and crop size. The farmer may harvest several different crops at different times of the year. Migrant workers only work for those specific harvest periods and move on to other farms for other crop harvests. This requires the farmers to have flexibility with planting and harvesting the product depending on the variable demand challenges.
Challenges
Any compassionate business leader will confirm that it is never easy to layoff personnel or make the announcement about the end of
References: Douglas, G. (May, 2013). Yahoo Business. Production Plan Strategies -- Chase Production. Retrieved from: http://voices.yahoo.com Jacobs, F. R. & Chase, R. (2011). Operations and Supply Chain Management (13th ed.) Boston, MA: McGraw-Hill Irwin