Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union.
Haya orders 40 ties in each of the school colors and 10 in each of four sports. She almost instantly sells out of all the sport-themed ties. She decides to approach each of the sports teams on campus to see if they would be willing to buy ties "in bulk." Which of the following is true about Haya's supply chain as it relates to her new idea of having bulk sales?

Question

Quizplus · Accepted Answer

Haya is using a pull model because she is waiting for demand to be generated before ordering more products. She sold out of the sports-themed ties and is now approaching sports teams to see if they would be interested in buying in bulk. This is different from a push model where products are ordered in advance and forced onto the market regardless of demand. Haya may not have an accurate demand forecast yet as she is still in the process of testing the market and figuring out how much demand there is for her product. However, there is no evidence of the bull-whip effect in this scenario as Haya is not experiencing any fluctuations in demand caused by supply chain inefficiencies.

Haya Noticed That College Students Needed to Dress Up for Presentations