Final answer:
Jeremy utilizes a pull strategy, which is driven by customer demand leading to orders that trigger production, suitable for custom-made items like jewelry. This differs from a push strategy that relies on demand forecasts to determine production levels.
Step-by-step explanation:
Jeremy is employing a pull strategy in his custom jewelry business. A pull strategy is characterized by the creation of consumer demand through marketing and customer relationship management, prompting retailers to order more stock due to increased consumer demand. This approach is often utilized in the context of custom or made-to-order products like high-end jewelry, where the manufacturing process is initiated as a result of actual customer orders rather than forecasted demand.
In contrast, a push strategy involves estimating demand and producing goods in advance, which are then pushed through the distribution channels to the end consumer. This often leads to excess inventory if the demand forecasts are incorrect. Meanwhile, hybrid strategies combine elements of both push and pull, and agile strategies focus on flexibility and adaptability to meet volatile demand conditions.
A push strategy is when production is based on forecasted demand, whereas a pull strategy is when production is based on actual customer orders. In this case, Jeremy makes custom jewelry based on the orders he receives from high-end boutiques. This allows him to respond directly to customer demands and minimize excess inventory.
Therefore, Jeremy's supply chain strategy is a pull strategy.