Supply Chain Integration - Push, pull and push-pull systems - Push-pull supply chain
3 important questions on Supply Chain Integration - Push, pull and push-pull systems - Push-pull supply chain
What is the supply chain time line?
This is the time that elapses between the procurement of raw material, that is, the beginning of the time line, and the delivery of an order to the customer, that is, the end of the time line.
Where can we find the push-pull boundary?
We can find this boundary halfway through the supply chain time line.
The push-pull boundary is located somewhere along the time line and it indicates the point in time when the firm switches from managing the supply chain using one strategy, typically a push strategy, to managing it using a different strategy, typically a pull strategy.
The push-pull boundary is located somewhere along the time line and it indicates the point in time when the firm switches from managing the supply chain using one strategy, typically a push strategy, to managing it using a different strategy, typically a pull strategy.
How can a manufacturer take advantage of aggregate forecasts?
Aggregate forecasts are more accurate. Demand for a component, for example, is an aggregation of demand for all finished products that use this component. Since aggregate forecasts are more accurate, uncertainty in component demand is much smaller than uncertainty in finished goods demand and this leads to safety stock reduction.
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