Final answer:
The chase strategy for managing demand fluctuations typically involves hiring more employees to meet increased demand or laying them off when demand is low. It focuses on adjusting the workforce and production rather than making long-term strategic changes.
Step-by-step explanation:
In using the chase strategy, a business approach to managing demand fluctuations, variations in demand could be met predominantly by adjusting the workforce and production output. Specifically, options that align with the chase strategy include hiring more employees to increase production when the demand is high and reducing the workforce during periods of low demand. This approach ensures that production levels closely follow the current demand patterns, thus aiming for minimal inventories and optimized resource allocation. It does not typically involve increasing production capacity or reducing product variety, as these actions do not adjust with the immediate variations in demand. Additionally, the chase strategy is less related to setting prices, opening new facilities, or starting to sell new products, as these are more strategic long-term decisions rather than operational adjustments in response to short-term demand changes.