Learning Team Reflection: Chase Strategy Essay
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Chase strategy can be when development meets the need and potential from one period to the next. This tactic is mostly used when demand is capricious and there is no inventory. Many cases when using this strategy result in a hire turnover price when it comes to employment which can lead to insecure and unhappy workers. Problems with labor unions might arise as well.
Other results of this approach include improved inventory costs and unpredictable use of industrial facilities and tools. This allows industries to have a large amount of flexibility. A serious advantage of the strategy is the fact inventory can be allowed at its lowest level which could provide a cost savings to some corporations.
The just-in concept companies utilize the pursue strategy to mixture planning. There are plenty of companies that prefer to use a combination of the extent and pursue strategy. The combination enables optimization of goals and lower costs more so than independently. Companies and businesses inside the service industry that use this tactic are require matching which means that the labor force must match the demand.
An additional example of an industry that uses the pursuit strategy may be the auto market. Companies like Ford, GENERAL MOTORS, and Hyundai have cars that depreciate quickly plus the cost of warehousing, insurance, and taxes happen to be high. Vehicles cannot be stockpiled for too long so therefore, just so many are produced based on demand of the customer.
Another model would be the junk food industry. For example , Chik-Fil-A will only create a meal once an purchase is taken which fulfills the demand of the customer. When companies inside the service sector use Pursue Strategy, they have a tendency to hire by the hour employees, part time employees and let overtime in order to meet the demand of shoppers.
Some down sides of using the Chase Technique would be a high turnover level which can cause low staff morale along with problems with labor unions and a possible embrace labor costs. The use of the Run after Strategy may also mean bigger hiring and training costs.