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Explain the push/pull view of supply chain processes. Consider the supply chain involved when a customer orders a book from ‘Rokomari.com’ or "Amazon". Identify the push/pull boundary and two processes each in the push and pull phases.

Question: Explain the push/pull view of supply chain processes.

The push/pull view of supply chain processes is a framework for understanding how products move through the supply chain. The push/pull view considers two broad categories of processes: push processes and pull processes.

Push processes are driven by forecasts and are typically used to create a supply of goods in anticipation of customer demand. In other words, the supply chain is "pushing" products towards the customer, based on a prediction of what they will want. This approach can be useful for products that are predictable and have stable demand, such as basic commodities or staple goods.

Pull processes, on the other hand, are driven by customer demand. They are used to replenish inventory in response to actual customer orders. In this case, the supply chain is "pulling" products in response to customer demand. This approach is more suited to products with less predictable demand, such as seasonal or trend-driven products.

The push/pull view of supply chain processes is a helpful way to understand the interplay between supply and demand in the supply chain. By using the appropriate mix of push and pull processes, companies can optimize their supply chains to meet customer needs efficiently and cost-effectively.

Question: Consider the supply chain involved when a customer orders a book from ‘Rokomari.com’ or "Amazon". Identify the push/pull boundary and two processes each in the push and pull phases.

When a customer orders a book from 'Rokomari.com', the supply chain involved can be broadly divided into two phases: the push phase and the pull phase.

Push Phase:
The push phase of the supply chain involves processes that are driven by forecasts and aimed at creating a supply of products in anticipation of customer demand. In the context of 'Rokomari.com', the push phase of the supply chain would involve the following processes:

Push Phase:

  1. Forecasting and Planning: Rokomari.com needs to forecast the demand for books based on factors like historical sales data, market trends, and seasonality. This process is an example of a push process because it is based on anticipated customer demand and is used to create a supply of books in anticipation of customer orders.
  2. Procurement and Production: Based on the demand forecast, Rokomari.com needs to procure the required books from publishers and distributors. This process involves ordering and receiving books, and it is also a push process because it is driven by the anticipated demand.

Pull Phase:

  1. Order Processing: When a customer places an order, Rokomari.com processes the order by verifying the payment, packaging the book, and scheduling the shipment. This process is an example of a pull process because it is initiated by actual customer demand and is used to fulfill a specific order.
  2. Delivery: Once the order is processed, the book is shipped to the customer using a logistics provider such as a courier service. This process is also a pull process because it is initiated by customer demand.

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Push/Pull Boundary:

The push/pull boundary in this supply chain is the point where the customer places an order. Up until this point, Rokomari.com is using push processes to anticipate customer demand and create a supply of books. After the customer places an order, Rokomari.com switches to pull processes to fulfill that specific order and deliver the book to the customer.

Overall, the push/pull view of supply chain processes helps us understand how different processes in the supply chain are driven by either anticipated demand (push) or actual customer orders (pull). By optimizing the balance between push and pull processes, companies can improve their supply chain efficiency and better meet customer needs.


Copyright @Anisur Rahman Nayem

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