Question

I need someone to clarify one confusion to me , its regarding operations management.

can someone explain the 3 strategies in aggregate capacity management in alot of details ( like 500 words) so I can understand about it more.

the three strategies are (level, hybrid, and chase)

Answer 1

Aggregate capacity management basically handles overall operations of an organisation by having several strategies. It basically include all the operational activities of an organisation in order to maintain a proper balance in between the long term strategic plannings of the organization with the short term success regarding production of the organisation. It follows the myth like small successes in life brings out large success. Hence short term success in production of the organisation leads to follow of long term strategic plannings.

Aggregate capacity management basically include three strategies -

1. Level strategies
2. Chase strategies
3. Hybrid strategies

Organisation follows any of the given above strategies in order to do all the activities regarding operations management.

Firstly level strategies includes a proper maintenance of the steady production rate of the organisation with respect to its level of workforce. It also depends upon the level of the demand of the customers regarding the products or services of the organisation, sometimes the demand is high and sometimes its low. Level strategies include very steady workforce. It includes high inventory and also increases back logs in the organisation. It provides a constant level of output of the production and meet the demand of the customers.

Second one is Chase strategies which includes the dynamic match of the demand with the production of the organisation. In this, production of the products and services of the organisation highly dependent upon its demand by the customers. It includes low inventory and also reduced down the back logs. Sometimes it leads to lower productivity and depressed work force. It provides optimum utilisation of inventory available in the organisation. Just in time production is one of the example of chase strategies.

The third one strategies of aggregate capacity management is hybrid strategies, it is basically the fusion of level strategies and chase strategies. It includes proper balance between level strategies and chase strategies. Many organisations find it very advantageous to use hybrid strategies in its aggregate capacity management in order to do all the relevant activities.