Which of the following statements about push processes is accurate?

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

The statement that push processes may also be referred to as speculative processes is accurate because push processes operate based on forecasted demand. In this methodology, products are manufactured and pushed through the supply chain based on predictions or expected demand rather than actual customer orders. This approach involves speculative production because it assumes that future demand will align with these forecasts, which can lead to overproduction or inventory holding if the forecasts do not materialize.

Push processes prioritize efficiency and economies of scale, often leading to a build-up of stock in anticipation of demand. This differs significantly from responsive processes that react to actual customer orders or immediate market conditions, as well as flexible processes that adjust rapidly to changes in demand. The terminology “demand processes” might suggest an alignment with customer needs, which is characteristic of pull systems rather than push systems that speculate based on forecast data.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy