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Learning Team C Reflection Robert Copeland, Priscilla Umeda, and Dolores Lane OPS/571 July 15, 2013 Professor William Wider Aggregate planning is a transitional planning method used to establish the necessary resource capacity such as labor, raw materials, and production facilities, an organization will need to meet their expected demand. The aggregate method of planning is developed for a group of products, and an individual product. The intermediate planning range can imply a period of six-12 months. In aggregate planning one has to determine demand, and capabilities for each period, which is based on the organizations current forecasting techniques. The capabilities are determined by using current available resources, including regular time, overtime, and subcontracting. Also by determining the significant company policies, and establish unit cost bases on applicable sources. Alternative plans have to be developed and the cost has to be calculated for each one. The objective of aggregate planning is to develop a realistic production plan on an aggregate level which will ensure the organizations goals and customer needs at the lowest total cost. Another goal is to maximize customer service and the utilization of plans and equipment. Therefore, minimizing inventory cost, changes in the workforce and production levels. One strategy, which can be chosen in aggregate planning, is the chase strategy. The chase strategy assists companies in matching production, and demand by hiring and firing employees as necessary to manage output. When work demand increases, production must increase, as a result, additional employees are hired to meet the demand. However, when demand decreases production is reduced, therefore, causing layoff, and firing. IDENTIFICATION OF TWO COMPANIES THAT USES CHASE STRATEGY The advantages of chase strategy cannot be overemphasized. Automobile company such as Ford is a great example of company that use chase strategy. This is due to high holding cost; insurance, warehousing and taxation to mention but a few. There is also the risk of theft, natural disaster, fire etc. associated with overstocking cars. On this note, it becomes very important to produce and stock according to trend and volume of demand. Another example is a service industry such as quick service restaurants (Quick & Tasty Foods in specific). Due to sensitivity/regulations associated with foods, health implications and shelf life of food products; chase strategy is very appropriate because it responds only to the volume of demand or food order. This way; they cook to order, buy materials to match what to be produced overtime. Again, it frees up inventory space and cost, reduce wastes and spoilage, products are fresh and highlighted at its seasonal peak. The summary of chase strategy is that production is varied as demand varies. It requires proper planning though, because such industries must still be in stock and beat lead times; not disappointing customers and still stay profitable. What are some of the challenges associated with using the chase strategy and why'  Many companies experience variable demand for their company. In some cases, some companies face several different in demanding how to meet demand. A chase strategy is a level strategy. It is use in production and is valued for many varieties. Today more and more companies are waking up to a notion that strategy is not much concerned with how quickly an organization can adopt the trends and new ideas that come along , but rather how several individual components of strategy can be skillfully and purposefully interweaved to create an organization with confidence in facing its markets and competitors. Good strategies fail from lack of focus to competency gaps and other causes, good strategies can be saved with preventive actions. The business news is filled with stories of corporate failure. From the recent busts to the once powerful companies whose fortunes have slipped, these unhappy endings are often the result of one thing, good strategies gone bad, and the underlying cause is usually poor execution. References Aggregate Planning. (2013). Retrieved from http://www.referencesforbusiness.com   Jacobs 13edBookshelf. Web. 12 July 2013 . http://first.emeraldinsight.com