Explain the three essentially production planning strategies?
Explain the three essentially production planning strategies?
Production planning is the planning and organizing of the overall operations of a business in such a way that the capacity & demand are balanced to minimalize cost. The three essentially production planning strategies are:
CHASE STRATEGY
Chase strategy is balancing the capacity and demand period by period or as required by the organization. However, the chase strategy results in hiring or laying off of a considerable number of employees, resulting in unhappy employees and problems with the labor unions. Also, there is no systematic use of the plan as there is an erratic utilization of the equipment. There must be flexibility in the firm to accommodate the changes. Firms using the Just-in-time concept use this strategy to manufacture when required. For example, a hotel order which produces or makes as and when the order is placed.
Step by step
Solved in 3 steps
