Chase Survey

The Chase strategy is one of the three production planning strategies, and is similar to subcontracting employees. Chase and Jacobs (2010) stated, “Match the production rate to the order rate by hiring and laying off employees as the order rate varies. The success of this strategy depends on having a pool of easily trained applicants to draw on as order volumes increase” (Production Planning Strategies).This allows for the production company to not have people remain as employees once a particular job is done. It allows companies to hire as needed rather than keeping employees employed.

When thinking of the chase strategy a company that comes to mind that may use the strategy would be the restaurant business. “Think of this strategy in terms of a restaurant, which produces meals only when a customer order, therefore matching the actual production with customer demands” (Hamlett, 2014). An example of a restaurant using the chase strategy would be fast food restaurants like Chik-Fil-A. Orders are not made in advance but when they are ordered. Another industry that can use case strategies would be the automotive industry. “Automobiles can cost companies a lot of money if not purchase and taxes can incur the longer it sits on the lot” (Reference for Business, 2014). An example of auto industries that might use the chase strategy would be Ford, GM, Hyundai, Chevy and Toyota. Cars can depreciate quickly and the costs to storing, insurance and taxes can he quit high. Cars cannot be stockpiled for a long period of time. Only a certain amount is made to meet the current demand by the consumers. Employee’s in this chase strategy industry are normally paid hourly and can be trained quickly.

Some challenges to using the chase strategy could be that if there is not a pool of employees waiting when a job arises, then there may not be enough staff to fill the openings. According to Chase and Jacobs (2010), “When order backlogs are low, employees may feel compelled to...