Reference no: EM13811377

Re write this introduction and conclusion given below:

Introduction:

Companies that use the chase strategy, or demand matching strategy, produce only enough goods to meet or exactly match the demand for goods. When production meets the demand and volume of a product from one cycle to the next is known as the chase strategy. This strategy is mainly used when demand is not predictable and there is not any inventory.  In most cases using this strategy can result in a higher employee turnover rate which often leads to apprehensive and displeased employees. The chase strategy has several advantages it keeps inventories low, which frees up cash that otherwise can be used to buy raw materials or components, and reduces inventory carrying costs that are associated with holding inventory in stock. Cost of capital, warehousing, depreciation, insurance, taxes, obsolescence and shrinkage are all inventory carrying costs.    There are numerous companies that favor the use of a combination of both the chase and the level strategy.  The mixture enables effectiveness of goals and lowers the cost more so than using each strategy alone. 

Conclusion:

Companies that use the chase strategy produce just enough goods to meet the demand for goods. The chase strategy has several advantages including keeping inventories low. By keeping inventories low the company has cash that would otherwise be used to purchase raw materials or parts. The chase strategy reduces inventory costs that are related to holding inventory in stock.