Costs associated with recruiting and firing total 7,500.
One tactic businesses employ to keep inventories at a constant level while meeting demand is the chase strategy. Because the chase method alters production to satisfy demand, it is occasionally referred to as demand matching.
Benefits
(A) Lower inventory levels are the primary advantages of a chasing strategy (free capital resources).
Reduced carrying costs are (B).
Example
When you order meals at a restaurant, the staff often makes the order by drawing supplies from a "stable inventory" level, or in other words, "chasing the demand."
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