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What is the production and inventory strategy in a push-based supply chain? Group of answer choices Make-to-order Assemble-to-order Make-to-stock Make-to-assemble

Question

What is the production and inventory strategy in a push-based supply chain? Group of answer choices

Make-to-order

Assemble-to-order

Make-to-stock

Make-to-assemble

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Solution

In a push-based supply chain, the production and inventory strategy is typically "Make-to-Stock".

Here's a step-by-step explanation:

  1. Forecasting: In a push-based supply chain, demand is forecasted. This means that companies predict the amount of product that consumers will buy.

  2. Production: Based on this forecast, companies produce goods in advance. This is why it's called "push" - because goods are produced before the customer has ordered them, and then "pushed" into the market.

  3. Inventory: These produced goods are then stored in inventory until a customer buys them. This is the "Make-to-Stock" strategy - companies make products and then stock them in anticipation of demand.

  4. Sales: When a customer orders a product, it's already ready to be shipped from inventory. This can lead to quicker delivery times, but also carries the risk of unsold inventory if demand is overestimated.

So, in summary, a push-based supply chain uses a Make-to-Stock strategy, producing and storing goods based on forecasted demand.

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