A supply chain driven by actual customer orders or purchases follows a ________ model.
A) pull-based model
B) build-to-stock
C) push-based
D) replenishment-driven

Question

Quizplus · Accepted Answer

A pull-based model is also known as a demand-driven or customer-driven supply chain, where production and ordering are based on actual customer orders and demand, rather than forecasts or assumptions. This helps to reduce inventory carrying costs and minimize waste, while increasing responsiveness to customer needs. The opposite of a pull-based model is a push-based model, where production and ordering are based on forecasts or assumptions, which can lead to overproduction and excess inventory. The build-to-stock and replenishment-driven models are both examples of push-based models.

A Supply Chain Driven by Actual Customer Orders or Purchases