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Question 277 - CSCP discussion

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Which of the following consequences is typical of a push-based supply chain?

A.
Longer lead times
Answers
A.
Longer lead times
B.
Higher product obsolescence
Answers
B.
Higher product obsolescence
C.
Lower economies of scale
Answers
C.
Lower economies of scale
D.
Smaller production batches
Answers
D.
Smaller production batches
Suggested answer: B

Explanation:

A push-based supply chain produces goods based on forecasted demand and pushes them through the supply chain to the end customers. This approach often leads to higher product obsolescence because products may not align with actual market demand, leading to excess inventory that becomes outdated or unsellable. This is especially problematic for products with short life cycles or rapidly changing customer preferences.

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. McGraw-Hill Education.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

asked 16/09/2024
Nicklas Magnusson
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