Question

A firm uses the pure chase strategy of aggregate planning. It produced 1000 units in the last period. Demand in the next period is estimated at 800, and demand over the next six periods (its aggregate planning horizon) is estimated to average 900 units. Which of the following tactics would be most representative of following a chase strategy?

• add 100 units to inventory in the next period
• add 200 units to inventory in the next period 
• hire workers to match the 100-unit difference
• lay off workers to match the 200-unit difference
• implement a lower price point to increase demand

Answer 1

D. lay off workers to match the​ 200-unit difference

the 200 unit difference would be most representative of worker to match the 200 unit difference as their week performance leads to the difference instead of adding hundred unit is the next period is not good because there is difference of 200 unit at first but later when second option says that add 200 unit in invented the next period is also not suitable playing of the worker to match the difference is more suitable because it's lead due to low performance of the workers.