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Chase demand is a strategy used in inventory management and production planning that aims to align production and inventory levels with current customer demand. Instead of maintaining a steady production rate, businesses adjust their output to match fluctuations in demand, ensuring they have the right amount of products available when needed. This approach helps minimize excess inventory and reduces carrying costs, but it may require a flexible workforce and responsive supply chain practices. Chase demand is particularly beneficial in industries with unpredictable or seasonal demand patterns.

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