Pros and Cons of Chase Strategy Implementation

834 Words3 Pages
In regards to operations management, production and planning are both integral aspects. Managers, through properly planning are better able to handle unexpected evening that might otherwise undermine the production process. In addition, proper planning allows managers to manage expenses while delivering excess value to the both consumers and shareholders at large. To facilitate this process, the chase strategy is often implemented. This strategy, although complex in theory, is rather simple in its application. Many companies experience variable demand for their products. In many instances, production and sales are cyclical in nature. The retail industry is notorious for the cyclical nature of its business. In many companies within the industry, sales tend to rapidly increase during the holiday gift giving season. Likewise, during the periods of June through August, sales tend to languish. This concept is also noticeable in products that have seasonal demand patterns, such as snow blowers or lawn mowers. In such cases, companies face several different options in determining how to meet demand. Generally, these options fall into two "pure strategies which consist of the chase strategy and the level strategy. Under the chase strategy, production is varied as demand varies. With the level strategy, production remains at a constant level in spite of demand variations. The chase strategy, when implemented properly provides a competitive advantage to firms who are meticulous in
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