Final answer:
One advantage of a chase strategy in aggregate planning is that it helps keep inventories low by aligning production with demand, offering flexibility in adjusting production levels to match demand fluctuations.
Step-by-step explanation:
An advantage of a 'chase' strategy for aggregate planning is that inventories can be kept relatively low. This approach aligns production with demand, minimizing the amount of inventory that the company needs to store. By only producing what is needed to meet the immediate demand, companies can reduce their inventory costs significantly. This strategy allows for greater flexibility in production levels because production can be ramped up or down to match the changes in demand. Unlike level production strategies, the chase strategy does not aim to maintain a constant output level, thereby avoiding excess inventory during low demand periods.
The provided reference about choosing the least costly production technology is related to making cost-efficient decisions in business operations. It highlights the importance of optimizing production to save costs, and in the case of a chase strategy, it is the inventory costs that are optimized.