CPIM Practice Exam

Which type of manufacturer is most likely to adopt a chase strategy?

1. Paint manufacturer

2. Seasonal glassware manufacturer

3. Compression socks manufacturer

4. Seasonal ice cream candy bar manufacturer

The correct answer is: Seasonal ice cream candy bar manufacturer

A chase strategy in manufacturing is one that seeks to match production closely with customer demand. This approach is particularly beneficial in industries where demand fluctuates significantly over time or is highly seasonal. The seasonal ice cream candy bar manufacturer aligns perfectly with this strategy, as the demand for ice cream products often peaks during warmer months and declines substantially in cooler months. By employing a chase strategy, the manufacturer can efficiently manage resources, minimize inventory carrying costs, and respond dynamically to consumer demand peaks and troughs. In contrast, the paint manufacturer and the compression socks manufacturer likely have a more stable demand throughout the year, which makes a chase strategy less advantageous. Meanwhile, the seasonal glassware manufacturer might experience significant peaks in demand during specific times, such as holidays or special events, but the nature of the glassware might not require as tight of an alignment between production and demand as ice cream candy bars, which have more pronounced seasonal fluctuations. Thus, the seasonal ice cream candy bar manufacturer is indeed the most suitable example of a manufacturer that would adopt a chase strategy.