Page 206 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Unit 10: Building of a Supply Chain

Figure 10.1: Push/Pull Processes for a Retail Network Notes

Notes A push/pull view of the supply chain is very useful when considering strategic
decisions relating to supply chain design. This view forces a more global consideration of
supply chain process as they relate to a customer order. For instance, it could result in
responsibility for certain processes being passed on to a different stage of the supply
chain if making this transfer allows push process to become a pull process. One clear
distinction between the two supply processes is that a supply chain that has fewer stages
and more pull processes has a significant impact on improving supply chain performance.

Self Assessment

Fill in the blanks:
8. A supply chain is a ……………… of processes and flows that take place within and between
different stages and combine to fill a customer need for a product.

9. There are two different ways to view the processes performed in a supply chain which are
the push-pull view and the ……………… view.
10. ……………… processes are initiated by a customer order.

11. ……………… processes are initiated and performed in anticipation of customer orders.

10.4 Sourcing Strategy

The decision to source is determined by the strategy the firm may have for that category of item.
There are basically three sourcing strategies that are combined in different ways. These strategies
are:
1. Multi-sourcing Strategy
2. Network Sourcing Strategy, and

3. Single Sourcing Strategy
The strategic issues involved in each of these sourcing strategies are discussed below.

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