Which one of the following capacity alternatives would typically be best to implement a chase strategy for a manufacturing firm?
A) Increase overtime to satisfy peaks in demand.
B) Build anticipation inventory to absorb the variability in demand.
C) Use promotional campaigns to boost demand.
D) Use creative pricing to modify demand.

Question

Quizplus · Accepted Answer

A chase strategy involves adjusting production rates to match demand, and increasing overtime is a direct way to quickly adjust capacity to meet demand peaks.

Which One of the Following Capacity Alternatives Would Typically Be