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The use of a fair share allocation techniques would most likely be used in which of the following types of distribution system?

a. Pull system
b. MRP system
c. Push system
d. DRP system

User Reza
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Final answer:

Fair share allocation techniques are most commonly associated with push systems, where they are used to distribute inventory equitably among downstream participants based on predetermined criteria such as historical demand.

Step-by-step explanation:

The use of fair share allocation techniques is aimed at distributing resources or inventory in a way that is considered equitable or fair among various parties, and it's most commonly associated with push systems of distribution. In a push system, products are produced or procured based on forecasted demand and are then allocated to downstream participants in the supply chain. Fair share allocation can be used here to ensure that each participant receives inventory proportionally based on factors like historical demand or sales volume, avoiding favoritism or stockpiling at one location while others face shortages.

On the other hand, a pull system triggers production and distribution in response to actual demand, an MRP system (Material Requirements Planning) focuses on planning the production and purchasing based on specific production schedules, and a DRP system (Distribution Requirements Planning) also aligns inventory to meet demand but with a focus on distribution centers and final delivery points. None of these other systems inherently rely on fair share allocation as a primary means for distributing resources.

User Polis
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