Which of the following statements describes the benefits of a pull strategy?
A) It does not require advanced systems for implementation.
B) It decreases inventory turnover.
C) There is less likelihood of being overstocked or out of stock at each store.
D) It allows more efficient production and distribution scheduling to increase costs.
E) It forecasts the competitor's demand.

Question

Quizplus · Accepted Answer

In a pull supply chain, there is less likelihood of being overstocked or out of stock because the store requests for merchandise are based on customer demand. A pull approach increases inventory turnover and is more responsive to changes in customer demand, and it becomes even more efficient than a push approach when demand is uncertain and difficult to forecast.

Which of the Following Statements Describes the Benefits of a Pull