Remarkably, the chase strategy is one of the methods used by organizations to actualize their aggregate planning objectives. The practicability of the chase strategy is implicit on matching demand and capacity period by period. Primarily, the workforce is one of the operational parameters considered in aggregate planning. Companies hire and lay off employees to minimize their operational costs. The strategy also ensures that inventory costs are low and keeps the cost of products to a minimum for a given period. However, the chase strategy may have some undesired implications. For instance, a company that applies this strategy may see its training its cost of training increasing dramatically. This change can affect the company’s aggregate planning strategy in manifold ways.
Principally, organizations that apply the chase strategy are inclined to incessantly hire and lay off employees. Hiring new employees implies that human resource teams will have to train the recruits or even contract outside officers to train the employees. Notably, the ultimate goal of the aggregate planning strategy is to cut down costs while maximizing profits. Increased training costs will negatively impact the firm’s financial portfolio and thus undermine the aggregate planning strategy. On the underscore, maintaining a balance between capacity and demand is not feasible in the case where employee training costs are escalated. Despite meeting the required demand, hiring additional workers will prove to compromise aggregate planning if the training costs are high. The company will incur added expenses will trying to achieve a temporary increase in capacity. Admittedly, the chase strategy is a pivotal section of the aggregate planning strategies. However, it can be expensive if the cost of varying the workforce capacity is high. It is only suitable in instances where the costs of changing capacity are relatively low.