Chase plan, Operation Management

Chase Plan

The workforce size is varied as per to demand keeping the use of workers and inventory size constant. During months of low demand the workforce size is decrease and the extra workers are laid off similarly during months of high demand more workers are hired. The hiring and laying off costs are substantial in this plan. This workers morale is also low due to a sense of insecurity. The production of items is in tune with the demand requirements thus the inventory is almost negligible. Therefore the inventory cost is also negligible. During the months of heavy demand, overtime may be required month part of workers for which the company incurs overtime costs.

Advantages of chase plan

a.Anticipation inventory is not needed and investment in inventory is low.

b.Labor utilization is kept high.

Disadvantage of chase plan

a.Expense of adjusting output rates and or workforce levels.

b. Alienation of workforce.

Posted Date: 1/30/2013 8:00:47 AM | Location : United States







Related Discussions:- Chase plan, Assignment Help, Ask Question on Chase plan, Get Answer, Expert's Help, Chase plan Discussions

Write discussion on Chase plan
Your posts are moderated
Related Questions
Siting Departments for Process Layout - Service Operations In determining the relative position of service departments the costs of movement may be less important than other,

Charlie's Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every eight weeks to take

Is it ethical for employers to use information technologies to extend work into employees home lives?

Which business strategy below does the company Walmart's uses to go global? Elaborated going to China to do business... A) Global standardization strategy B) Localization str


Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

Of the barriers to supplier development mentioned in this chapter, which ones, in your opinion, are the most difficult to overcome? 2. Describe the major sources of supply base ris

A local bar serves a premium draft beer to its customers. The daily demand for beer is assumed to follow a normal distribution with a mean of 80 litres and a standard deviation of

Kaplan and Norton Balanced Scorecard Framework Kaplan and Norton (1992, 1993, and 1996) describe the concept of a 'balanced scorecard' that includes four categories of measure

1. Examine the flow process chart in the figure and try to develop an improved method for the future, taking advantage of the technologies becoming available. Answer: There are