BUS307 Week 4 – Discussion Forum 1

 

BUS307 Week 4 Discussion 1 Level Versus Chase Production Plan [WLOs: 1, 2] [CLOs: 2, 4, 5]

Prior to beginning work on this discussion forum, read Chapter 10: Sales and Operations Planning (Aggregate Planning), and Chapter 12: Managing Production Across the Supply Chain.

From the end of Chapter 10, answer Discussion Question 3: In general, under what conditions might a firm favor a level production plan over a chase plan? A chase production plan over a level plan?

Guided Response: Review several of your classmates’ posts and respond to at least two of your peers. You are encouraged to post your required replies early during the week to promote more meaningful and interactive discourse in this discussion. BUS307 Week 4 Discussion 1

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SMART ANSWER

Hello Professor and Class,

The chase plan is driven off by the demand for an item. It is used mainly in places where the demand changes regularly or it is too expensive to carry a large inventory. “Chase production plan is a sales and operations plan in which production is changed in each time period to match the sales forecast” (Bozarth & Handfield, 2016). Not having to keep a large amount of inventory helps with keeping the costs for storage low, and only making products as demand arises reduces the amount of waste.