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) continuous delivery

Question

Quizplus · Accepted Answer

A pull-based supply chain model is driven by actual customer orders or demand. It focuses on fulfilling customer demand by producing goods or services only in response to customer orders or purchases. This approach helps to match production to demand and avoid overstocking, reducing waste, and costs in the long run. On the other hand, a push-based model (choice C) produces goods or services in anticipation of customer orders or demand, leading to overstocking, waste, and increased costs. Build-to-stock (choice B) refers to a production model where goods are produced based on estimated customer demand, while replenishment-driven (choice D) focuses on maintaining a certain level of inventory to trigger regular replenishment orders. Continuous delivery (choice E) refers to a software development approach that emphasizes fast and frequent software releases.

A Supply Chain Driven by Actual Customer Orders or Purchases