Which of the following is a characteristic of push processes in supply chain management?

Study for the Supply Chain Management Exam. Prepare with multiple choice questions, each question comes with detailed explanations. Ace your exam with confidence!

In supply chain management, push processes are characterized primarily by their reliance on forecasting to plan production. This approach means that production and inventory decisions are made based on anticipated demand rather than on actual orders from customers. Companies utilizing push processes aim to produce goods in advance based on sales projections, which allows them to fill customer orders more quickly once demand arises.

This anticipatory nature of push processes contrasts with pull processes, which directly respond to actual customer demand and current market needs. By focusing on forecasts, push systems can sometimes lead to overproduction or excess inventory if demand forecasts are inaccurate, making it crucial for businesses using this model to continuously refine their demand forecasting methods to reduce the risk of obsolescence and waste.

Options that pertain to being driven by customer demand, being highly reactive, or prioritizing just-in-time production describe characteristics of pull systems and lean manufacturing, which seek to minimize inventory and align production closely with actual sales activity. In this way, the correct answer highlights a fundamental aspect of push processes, distinguishing them from other methodologies in supply chain operations.

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