Prior to beginning work on this discussion forum,
- Read Chapter 13 of the course textbook, Operations and Supply Chain Management.
- Read Just Say No; The Path to Success Lies in Deciding Which Strategies to Chase, and Which to AvoidLinks to an external site..
Chase strategy refers to the concept that you are chasing the demand set by the market. Production is set to match demand and does not carry any leftover products. This is a lean production strategy, saving on costs until the demand (the order) is placed. Inventory costs are low, and the cost of goods for products sold is kept to a minimum and for a shorter length of time.
Chase strategy is used in industries that must contend with perishables or with a company that does not have a lot of extra cash on hand to handle the added risks of unsold products. The production schedule is based on orders and immediate demand.
By varying production or services to meet demand, the lean approach of inventory management has lower inventory levels and reduced labor cost.
For example, an airline call center has varying demand—higher calls during summer months and major holidays. Inaccurate forecasts can cause havoc concerning staff capacity and scheduling decisions. In some situations, equipment capacity may not be adequate during periods of peak demand.
For this discussion forum, decide to be for or against adopting a chase strategy for a major airline call center. Provide a research-based rationale for your decision.
Your initial response should be a minimum of 200 words. Graduate-school students learn to assess the perspectives of several scholars. Support your response with at least one properly cited and referenced scholarly or credible source in addition to the text. Review the APA: Citing Within Your PaperLinks to an external site. and APA: Formatting Your References ListLinks to an external site. resources from the Writing Center for help.