Question

What is a Mixed strategy? Why is it better than Level and Chase strategies?

Answer 1

Mixed Strategy:- It is a combination of level production and chase strategy. It is like a advance decision of all plays to choose a course of action for each of them according to the probability distribution. A mixed strategy is like an assignment of a probability to each pure strategy.

Mixed strategy is better than level and chase strategy because:-

• A level strategy using inventory as the level.
• A chase strategy using capacity as the level.
• But when comes to the mixed strategy it is using both level and chase. It is a combination of both and using level and chase both to manage the inventory as per the organizational capacity. A particular level should be set in mixed strategy which will tell that till a particular level the inventory should be minimum and labor cost should be according to the requirement.