Question

explain the pull/push processes within the supply chain

Answer 1

Answer : Pull process in supply chain : In case of pull process in supply chain the supply depends on consumers demand. In this process when consumers demand for goods and services then based on this demand the company provide supply of those goods and services. In this process the company produce and supply only required product units. The benefit of using pull process in supply chain is that the company does not face excess supply situation when demand is less. But the drawback of using pull process in supply chain is that when demand is very high then company become unable to meet this high demand which increase the opportunity cost to the company.

For example; restaurant become prepared and supply dishes when receives orders from customers.

Push process in supply chain : In case of push process in supply chain the supply depends on forecasting. In this process supply does not depend on customer needs and wants. The company produce and supply the product by thinking that there will be demand for products in the market.

For example; supermarket keeps stock of products based on forecasting demand experience. As a result, when we reach to the supermarket then we get available products in the market. But when demand become suddenly high then there occur a shortage situation and when demand become suddenly less then there occur a surplus situation in the market.