Supply Chain Management : Supply Chains Essay
Supply chain is a network between a company and its suppliers to produce and distribute a specific product, and also represents the steps it takes to get the product or service to the customer. On the other hand, supply chain management is a crucial process of taking a dynamic role in working with suppliers in the supply chain to improve products and developments.
Push and Pull Systems
Push-Pull refers to the subtleties between a suppliers and a customer. Suppliers “push” or marketing products to their customers; customers “pull” or ordering products from suppliers.
A push system may be interactive and non-interactive but the crucial point is that a push system markets finished goods from “warehouses”. Businesses must forecast which products customers will purchase along with defining what quantity of goods will be purchased. The most noteworthy problem with this inventory method is the volatility of customer demand.
A pull system waits for and retorts to customer demand. It is also called just-in-time or JIT. If combined with adequately quick production to meet customer demand, may need no pre-production and no warehoused inventory. It is a lean manufacturing strategy used to reduce waste in the production process. Compensations and Drawbacks of Push and Pull Systems
One of the benefits of push system is that it’s fairly assured having enough product on hand to complete customer orders, avoiding incapability to meet customer demand. However, the push system…