Chase Strategy Essay

What atomic number 18 some of the challenges associated with using the drag system and why? The chase outline is one of three takings strategies for aggregate planning in use today. Chase strategy is a form of carry matching. This is done by forecasting the expected demand set by previous sales or projected sales. The inclination of this is to meet or match the demand of their customers. It is also an appropriate strategy with variable demand such as seasonal items. The chase strategy is mostly used in service based industry that boil down on meeting demand. Due to the unforeseen forecast, the company must claim and fire their employee to meet the production needs. linked parcel service and Wal-Mart are examples of companies that use chase strategy. During the pass season beginning in November, United Parcel Service and Wal-Mart hire seasonal workers to meet the increase in volume. This means that both of these companies expect to be busy and the opportunity to nonplus re venue is available if they have the correct number of employees in place. A primary wages is the flexibility to meet demand fluctuations. Another advantage is both of these companies do not have to pay for benefits such as medical, dental, or entrust retirement since these employees are not vested.According to seek Alpha, United Parcel Service expects to pick up 32 zillion packages on December 2, 2013, which is the first Monday after Thanksgiving and known as Cyber Monday, this will be more packages than 10% last year. On Cyber Monday, online retailers provide steep discounts for holiday shoppers. To handle this increased workload in the holiday season, UPS will hire 55,000 seasonal employees across the U.S.ReferenceHow This Holiday sequence Will Be A Blessing For UPS. (2013, November 3). Retrieved September 26, 2014, from http//seekingalpha.com/article/1800442-how-this-holiday-season-will-be-a-blessing-for-ups