Chase Strategy

Chase Strategy

  • Submitted By: dinau
  • Date Submitted: 09/17/2013 7:34 AM
  • Category: Business
  • Words: 506
  • Page: 3
  • Views: 9

For week’s three reflection, Team B will define the chase strategy; identify two to three companies that might use this strategy, the challenges associated with using the strategy, and why challenges arise.
Chase strategy also referred to as the demand matching strategy is an approach used when production meets the demand and capability from one period to the next. The strategy is used when certain demands are considered to be changeable, and there is no tool in place to keep track of inventory. Organizations that use this approach create or make only enough goods to satisfy goods demanded at that period. For example, at a restaurant similar to Red Lobster, meals are prepared after the customer places an order. That meal is matched to the customer who ordered it meaning that the product was supplied and presented to meet that customer’s demand (What Are The Strategies Used In Production Planning And Scheduling, 2013).
Most just-in approach companies aggregate planning through the use of chase strategy. As mentioned above, on the second paragraph, organizations using chase strategy produce just the necessary goods and products specifically to match or satisfy the demand for goods and products. Most industries adopt the use of chase strategy. In the auto industry for example, Hyundai, Ford, and General Motor, use the chase strategy because they have cars that rapidly depreciate in addition to high taxes, cost of warehousing, and insurance. These companies manufactured their cars based on consumers demand to eliminate the possibility to stock them in the warehouse for a long period of time. The Auto industry is not the only industry using the chase strategy, the fast food industry use chase strategy as well. They produce food only base on customers’ orders to match their current production with the current order. Fast food such as McDonald, Burger King, Taco Bell, Subway, Pizza Hut, and Popeyes would produce a meal only once a customer places his order....

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