Question

In the agriculture industry, migrant workers are commonly employed to pick crops ready for harvest. They are hired as needed and are laid off once the crops are picked. The realities of the industry make this approach necessary. Which production planning strategy best describes this approach?

Answer 1

Answer:

The correct answer is: Chase strategy.

Explanation:

The chase strategy is a production planning approach that consists in producing according to the demand level of the market. Industries implementing this practice work based on orders. As soon as they receive an order they start processing the goods and once the production is over, the operations stop.

This strategy is helpful while saving inventory costs and is mostly used by perishables industries that cannot afford the risk of loss or unsold products.