6. Firms that match the production rate to the order rate by hiring and laying off employees as the…

➤ When should a company use a chase strategy instead of a level strategy?
Use a chase strategy when demand fluctuates widely, inventory is costly or perishable, and the workforce can flexibly scale. Choose level production when hiring and firing costs, union rules, or morale concerns are high. Compare inventory carrying costs, labor flexibility, and service requirements before deciding between the two approaches.