Strategic Supply Chain Management Practice Exam

What are the two categories into which supply chain processes are divided in the push/pull view?

1. Reactive and proactive processes

2. Push and pull processes

3. Supplier and customer processes

4. Internal and external processes

The correct answer is: Push and pull processes

The two categories into which supply chain processes are divided in the push/pull view are indeed push processes and pull processes. This framework helps businesses understand how to effectively manage their supply chains based on demand patterns. Push processes are those that are driven by forecasts or anticipated demand. In this approach, production and distribution decisions are made ahead of time based on projections. For instance, a company might produce a certain quantity of products based on expected sales trends, storing excess inventory to meet future demand. On the other hand, pull processes are initiated by actual demand. In this model, production and distribution are triggered by customer requests or orders, making it more responsive to real-time market demands. This can lead to reduced inventory levels and minimized waste, as resources are allocated based on current consumption rather than predictions. By understanding these two categories, companies can strategically align their operations with market conditions and improve their overall efficiency and responsiveness in the supply chain.