Question

A push/pull view of the supply chain categorizes processes based on whether they are initiated in response to a customer order (pull) or in anticipation of a customer order (push). This view is useful when considering strategic decisions relating to supply chain design.

Which of the following correctly identifies the characteristics of the Push/Pull View in supply chain management?

A) Push processes involve activities initiated in response to a customer order, while pull processes are activities initiated in anticipation of a customer order.
B) Push processes are initiated in anticipation of a customer order, while pull processes are activities initiated in response to a customer order.
C) Push processes and pull processes are both initiated in response to a customer order.
D) Push processes and pull processes are both initiated in anticipation of a customer order.

Answer 1

The Push/Pull View in supply chain management is correctly described by option B. Push processes are carried out in anticipation of orders, while pull processes start when a customer order is received.

Step-by-step explanation:

The correct identification of the characteristics of the Push/Pull View in supply chain management is option B) Push processes are initiated in anticipation of a customer order, while pull processes are activities initiated in response to a customer order. In this view of supply chain management, push strategies are used to forecast demand and produce products before customer orders are received. This forecasting is based on historical data and market analysis. On the other hand, pull strategies are more responsive to real-time demand, producing goods only after customer orders are placed, which aims to reduce excess inventory and associated costs.