Which of the following consequences is typical of a push-based supply chain?
Which of the following consequences is typical of a push-based supply chain?
In a push-based supply chain, products are manufactured based on predicted demand and pushed to the market in anticipation of customer orders. This often results in higher product obsolescence because goods are produced in advance and may not match actual demand trends, leading to excess inventory that becomes outdated. Longer lead times are more associated with inefficiencies that can occur in any supply chain model, whereas smaller production batches and lower economies of scale are characteristics typically found in pull-based supply chains.
A. Longer lead times