A chase strategy mainly adjusts:

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BlackTom AI · Accepted Answer

The question asks what a chase strategy mainly adjusts. 
Option 1: Inventory. In a chase strategy, inventory levels are typically kept consistent or reduced through fluctuations in production to meet demand, rather than actively adjusting stock levels as the primary lever. This makes inventory an auxiliary consideration rather than the core adjustment. 
Option 2: Workforce/capacity. This is the hallmark of a chase strategy: aligning production capacity with demand by varying the workforce levels, hours, or outsourcing. By hiring or laying off workers or using overtime, the firm matches output to demand, minimizing inventory and fluctuating capacity as the dominant mechanism. 
Option 3: Prices. Pricing is generally a demand-management or marketing tool and is not the central mechanism of a chase production strategy, which focuses on operational staffing and capacity changes rather than price changes to balance supply and demand. 
Option 4: Safety stock. While safety stock relates to protecting against uncertainty, a chase strategy does not rely on maintaining high safety stock to cope with demand variability; it instead modulates capacity to meet expected demand. Safety stock is more characteristic of a level or hybrid approach, not the core feature of chasing demand with capacity. 
Thus, the option that best fits the concept of a chase strategy is workforce/capacity, since the strategy centers on adjusting capacity to follow demand.

A chase strategy mainly adjusts:

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A chase strategy mainly adjusts:

View Explanation

Log in for full answers

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