Define push vs pull strategies in supply chain management.

Define push vs pull strategies in supply chain management.

• A. Push relies on forecasted demand to push products through; pull responds to actual customer demand.
• B. Push responds to actual demand; pull relies on forecasted demand.
• C. Push and pull are identical.
• D. Pull uses long production runs with no forecasting.

Answer: (A)

In push-pull planning, decisions are driven by either forecasted demand or actual demand signals. A push approach starts from forecasted demand and pushes production and inventory through the supply chain in anticipation of that demand. This can lead to higher inventory but quicker delivery for expected sales. A pull approach starts from real customer demand, triggering production or replenishment only in response to actual orders, which typically reduces finished goods inventory and increases responsiveness to changes in demand. The best choice reflects this distinction by saying that push relies on forecasted demand to push products through, while pull responds to actual customer demand. The other options mix up the definitions, claim they’re identical, or mischaracterize pull as having no forecasting and long production runs. In practice, many systems blend both approaches to balance efficiency and responsiveness.

In push-pull planning, decisions are driven by either forecasted demand or actual demand signals. A push approach starts from forecasted demand and pushes production and inventory through the supply chain in anticipation of that demand. This can lead to higher inventory but quicker delivery for expected sales. A pull approach starts from real customer demand, triggering production or replenishment only in response to actual orders, which typically reduces finished goods inventory and increases responsiveness to changes in demand.

The best choice reflects this distinction by saying that push relies on forecasted demand to push products through, while pull responds to actual customer demand. The other options mix up the definitions, claim they’re identical, or mischaracterize pull as having no forecasting and long production runs. In practice, many systems blend both approaches to balance efficiency and responsiveness.