Chase Strategy OPS571 Week 3

967 Words Oct 8th, 2013 4 Pages
Learning Team Reflection - Week 3
October 7, 2013
Stephanie Coleman

Learning Team Reflection - Week 3
This week a portion of our study focused on sales and operations planning. The sales and operations planning process helps companies provide better customer service, lower inventory, shorten customer lead times, stabilize production rates, and give top management a better view of the business (Chase & Jacobs, 2011). Sales and operations planning evolved into aggregate planning that stresses the importance of cross-functional teamwork and tightly integrated efforts between sales, distribution, logistics, operations, finance, and product development (Chase & Jacobs, 2011). Aggregate planning focuses on
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The resulting transition to a demand-driven model exceeded expectations with the company, in February 2010, announcing record cash flows from 2009 operations doubling 2008 cash flows and 35 percent higher than 2004 record cash flows (Kash, 2011).
Another example of a company using the chase strategy is retailer Neiman Marcus that ramps up temporary employment to meet an increase in holiday sales. The increased employees are utilized both in-store and in the warehouse to meet customer demand. Neiman Marcus mails out their “Christmas Book” in mid-September and sees a large increase in orders immediately afterward. Sales volume begins a steep ascent that peaks in early December (Auguston, 1992). The September demand represents 52 percent of peak shipments, and October represents 91 percent of peak shipments. Demand in November and December are in excess of 100,000 shipments per week reaching a peak demand volume of 28,000 orders per day translating to more than double normal sales (Auguston, 1992). Neiman Marcus meets this enormous demand shipping 90 percent of holiday sales within 1 day and 99 percent within 2 days with 99.4 percent accuracy. Achieving these extraordinary results requires advanced planning that includes hiring 300 additional people to work in their distribution center during the holiday season. Twenty percent of these temporary workers return each year (Auguston, 1992).

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