Chase Strategy Essay Example
Learning Team B Reflection
Learning Team B discusses the Chase Strategy. This includes a definition of the Chase Strategy. Additionally, the team discusses various companies that use the Chase Strategy to include benefits and drawbacks. For example, a drawback is the inability to retain top talent.
Definition of a Chase Strategy Learning Team B defines Chase Strategy as a procedure that matches demand and capacity period by period. This could result in a considerable amount of hiring, firing, or laying off of employees; insecure and unhappy employees; increased inventory carrying costs; problems with labor unions; and erratic utilization of plant and equipment. It also implies a great deal of flexibility on the firm's part (Reference for Business, 2013a).
Companies that use the Chase Strategy Companies that use the chase strategy, or demand matching strategy, produce only enough goods to meet or exactly match the demand for goods. For example, thinking of this strategy in terms of a restaurant, this produces meals only when a customer orders, and therefore provides the ability to match production with customer demand. The chase strategy has several advantages, such as keeping inventories low, which frees up cash that can be used to buy raw materials or components. Additionally, it reduces inventory carrying costs that are associated with holding inventory in stock. Cost of capital, warehousing, depreciation, insurance, taxes, obsolescence and shrinkage are all inventory carrying costs (Small Business, 2013a). Hospitals are an organization that employs the chase strategy. This is why they hire people on call because work depends on the hospital's work load or how many beds are occupied. Typically, nurses and other on-call personnel make a greater income than other individuals who might be employed for a firm using the Chase Strategy. Certain fast-food restaurants use an assemble-to-order strategy. A customer walks in, places an order for a
Learning Team B discusses the Chase Strategy. This includes a definition of the Chase Strategy. Additionally, the team discusses various companies that use the Chase Strategy to include benefits and drawbacks. For example, a drawback is the inability to retain top talent.
Definition of a Chase Strategy Learning Team B defines Chase Strategy as a procedure that matches demand and capacity period by period. This could result in a considerable amount of hiring, firing, or laying off of employees; insecure and unhappy employees; increased inventory carrying costs; problems with labor unions; and erratic utilization of plant and equipment. It also implies a great deal of flexibility on the firm's part (Reference for Business, 2013a).
Companies that use the Chase Strategy Companies that use the chase strategy, or demand matching strategy, produce only enough goods to meet or exactly match the demand for goods. For example, thinking of this strategy in terms of a restaurant, this produces meals only when a customer orders, and therefore provides the ability to match production with customer demand. The chase strategy has several advantages, such as keeping inventories low, which frees up cash that can be used to buy raw materials or components. Additionally, it reduces inventory carrying costs that are associated with holding inventory in stock. Cost of capital, warehousing, depreciation, insurance, taxes, obsolescence and shrinkage are all inventory carrying costs (Small Business, 2013a). Hospitals are an organization that employs the chase strategy. This is why they hire people on call because work depends on the hospital's work load or how many beds are occupied. Typically, nurses and other on-call personnel make a greater income than other individuals who might be employed for a firm using the Chase Strategy. Certain fast-food restaurants use an assemble-to-order strategy. A customer walks in, places an order for a