Supply Chain Management

OPMT 350-01 Supply Chain Management

Home Work 1 (Chapters 1 – 3)

Note: Provide examples for each concept which you will be elaborating.

1. (a) Compare and contrast:

Anticipatory and Response-based business models.

The similarity of Anticipatory (Push) and Response-based (Pull) business models is that firms use both to fulfill customer requirements and the difference between both is timing.

The Anticipatory model is an anticipation of what customers will demand in the future. Because information about purchasing behavior was not readily available, and firms were loosely collaborating with each other, businesses were driven by forecast. The forecasts used by the manufacturers, wholesales, distributors, and retailers were often different that led to a lot of excess inventory in the system. All the work was performed in anticipation of future projections, so the likelihood of misgauging customer requirements was very high. And because of this firms in the distribution channel created a duplication of similar anticipatory process.

The Response-based model aims to reduce or eliminate forecast reliance by joint planning and rapid exchange of information between supply chain participants. Because of the response base model managers can now obtain and share accurate information to improve the speed and accuracy of the supply chain logistics. By sharing information managers are improving their forecast or eliminating forecast in order to reduce anticipatory inventory deployment. By doing this customer can be provided with their desired items faster. This model requires fewer steps and therefore less cost to complete a fulfillment process compared to the anticipatory model.

Manufacturing and Geographic postponement.

Manufacturing and geographic postponement are strategies and practices that reduces the anticipatory risks of supply chain performance. The factors favoring one or the other form depends on the volume, value, and competitive initiatives...