Manufacturing Strategy

Manufacturing Strategy

○ Level Production: Target same outcome every month. Risk is – there may be period of over stocking leading to increased inventory handling cost.

○ Chase Production: This strategy maintains stable inventory level while varying production level to achieve the planned inventory level. Employee hiring and laying off may be required to deal with the inconsistent production level.

○ Hybrid Production: It’s a combination of Level and Chase Production strategy where Production will be ramped up to build up inventory and slowed down subsequently to allow Inventory level to decrease.