What is the driver for all activities upstream from the order penetration point?

Question

Quizplus · Accepted Answer

The driver for all activities upstream from the order penetration point is forecast-based, meaning that businesses use their predictions of future demand to plan and execute their supply chain activities such as procurement, production, inventory management, and distribution. This ensures that they have the right amount of inventory at the right place and time to satisfy customer orders while minimizing costs and waste. Therefore, businesses rely on their forecasting accuracy to optimize their supply chain performance and competitive advantage. Customer orders are downstream signals, while internal audit and quality control are internal processes that may impact supply chain performance but are not the primary drivers of upstream activities.

What Is the Driver for All Activities Upstream from the Order