Question

"In the __________ strategy, you can manipulate _________ to match supply and demand. a. Chase; inventory level b. Chase; inventory variety c. Chase; backorders d. Level; workforce size e. None of the above"

Answer 1

Answer:

a. Chase; inventory level

Explanation:

Chase Strategy is one of the two aggregate planning methods where the production is set according to demand forecasts. Hence in this type of aggregate planning, the inventory level may be increased for a certain duration to cater for higher demands while it can also be lowered through low production for low forecasts. Hence Inventory level may be manipulated to match supply and demand.

Answer 2

Answer:

B). Chase; inventory level

Explanation:

"In the chase strategy, you can manipulate inventory level to match supply and demand".

Chase Strategy simply means matching demand and supply with inventory capacity period by period. That is, a forecast for a considerable amount of inventory level with a low carrying costs for a planned supply.

A firm is said to be at advantage when she is able to combine inventory level with matching it against demand to better meet the organisational goals and set targets and at the same time achieve lower costs of production.