Chase Strategy Essay

1026 Words5 Pages
Chase Strategy The Chase Strategy “An approach to aggregate planning that attempts to match supply and output with fluctuating demand” (Index, 2014) This is a strategy that has been widely used with mixed results. Organizations use the idea of using “ temporary “ workers to do work at peak times during the year to help process and complete jobs and large orders is both efficient and cost effective. Organizations have several options to choose from when they are analyzing for planning strategies. One strategy is known as the chase strategy. The chase strategy: organizations are attempting to only produce enough inventories needed without any extra such as Flowers shops. Zero inventories mean there are no holding costs or shortages. Jacobs & Chase (2011) will explain how the chase strategy works. Match the production rate to the order rate by hiring and lay off employees as the order rate varies. The success of this strategy depends on having a pool of easily trained applicants to draw on as order volumes increase. There are obvious motivational impacts. When order backlogs are low, employees may feel compelled to slow down out of fear of being laid off as soon as existing orders are completed (p 534). One business example of the chase strategy is Edible Arrangements. The mission of this company is simply three little words creating one big mission, “to WOW you” (Edible Arrangements, 2015). With this mission in mind, Edible Arrangements’ inventory consists of items that they can sell while the fruit is still fresh to also take into account delivery and time for the customer to enjoy the product. If Edible Arrangements produced a mass stock of inventory, then that production strategy would have the potential to cost the company in lost produce. For Edible Arrangements the chase strategy comes into play during peak times; holidays such as
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