Which of the following is a disadvantage of the chase strategy of sales and operations planning?
A)minimization of inventory holding costs
B)flexibility in the use of capacity
C)reduced obsolescence and shrinkage
D)higher costs of hiring,training,and laying-off employees

Question

Quizplus · Accepted Answer

The chase strategy requires hiring and laying off employees as demand fluctuates, which increases labor costs and reduces employee morale. Therefore, option D is the correct choice as it specifies the disadvantage of using the chase strategy of sales and operations planning. Option A indicates the advantage of the chase strategy, while options B and C are irrelevant to the question.

Which of the Following Is a Disadvantage of the Chase