Question

A supply chain driven by actual customer orders or purchases follows a:

1) delivery-based model
2) pull-based model
3) replenishment-driven model
4) build-to-stock model
5) push-based model

Answer 1

A supply chain driven by actual customer orders or purchases follows a pull-based model. This means that production and inventory decisions are based on customer demand rather than forecasts or assumptions.

Step-by-step explanation:

A supply chain driven by actual customer orders or purchases follows a pull-based model. This means that production and inventory decisions are based on customer demand rather than forecasts or assumptions. In a pull-based model, products are only produced or shipped when there is a confirmed demand from the customer.

For example, a company that uses a pull-based model may receive orders from customers and then produce and ship the products accordingly. This helps reduce excess inventory, minimize waste, and improve customer satisfaction by ensuring that products are available when needed.

In contrast, a push-based model relies on forecasts and assumptions to determine production and inventory levels. This can lead to overproduction, excess inventory, and potential waste if the forecasted demand does not align with actual customer demand.