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

Question

Quizplus · Accepted Answer

A supply chain driven by actual customer orders or purchases follows a pull-based model, where the production or procurement is based on demand signals from the market. This approach requires a flexible and agile supply chain that responds quickly to changes in customer demand. Build-to-stock, push-based, and replenishment-driven models are based on forecasts and assumptions about demand, which may lead to overproduction or excess inventory. The optimized model is a general term that can refer to any supply chain model that aims to maximize efficiency, reduce costs, and improve performance. However, in the context of customer-driven supply chains, the pull-based model is the most relevant and effective.

A Supply Chain Driven by Actual Customer Orders or Purchases