A Chase strategy is sets the production rate equal to the demand in each time period
Rebecca Cline
A Chase strategy is “sets the production rate equal to the demand in each time period” (Collier & Evans, 2019, sect. 13.3). In other words, the chase strategy employs chasing the demand.
In the major airline call center, the use of the chase strategy could be detrimental to business. Although forecasting of demand has come a long way, there is still the potential for unforeseen events that could lead to sudden needs in the call center that would not be able to be fulfilled in a timely manner due to the reduced staffing. One example of this would be unforeseen weather conditions that require delaying or cancelling a flight. The delayed or cancelled flight would leave a large number of passengers who need assistance. If the call center does not have the efficiency to support the level of calls, the level of customer service would be affected.
Although outsourcing the call centers may be a sufficient idea for most day-to-day calls, in the event that there is an airline disaster, such as a major security event, employing proficient and well-trained service representatives will provide families with much greater service.
Although customer service is a large part of why the major air line call center should not adopt the chase strategy, there are also financial implications (Varadan, 2019). The cost of terminating employees as well as the cost of hiring, even seasonal employees to deal with demand, can provide to be costly to the organization (Varadan, 2019). Also, when employees are being terminated due to lack of demand, other employees may feel as though their jobs are not secure and may become demotivated.
Resources:
Collier, D. A, Evans, J. R. (2019). Operations and supply chain management. Cengage Learning.
Varadan, S. (2019, July 19). The advantages of an aggregate production plan. Bizfluent. Retrieved September 28, 2021, from http://track.smtpsendemail.com/9064971/c?p=0YW33jyDJoHQJPZ_3XhGEhp7ZDEZA5SWOV4YX5l9pfGq4ONm8jD6DzTx9vEluj83Bph88FvN1647V5wMjNHPaarV-8l5aFwKHgSCoXveuqfHHi2kY63cRhotlnUnYxrhMkkZB5v4NYoVxs5xVwiHUR57uup5sh-y8ziPnPnMRcdrC14gV3uUBs6O1uZDNo6jMdLI4vzXDsrjyBGfKuEMuw==
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