Which of the following best illustrates a supply-push strategy?

Prepare for the UCF MAR3203 Supply Chain and Operations Management Exam. Engage with multiple choice questions and detailed explanations. Secure your success with detailed reviews of key concepts!

A supply-push strategy is characterized by manufacturing goods based on predictions of future sales rather than on actual customer demand. In this scenario, businesses produce products in anticipation of what they believe the market will require, focusing on forecasts and estimates of consumer behavior. This approach often entails creating inventory in advance and pushing it through the supply chain to retailers or end customers, regardless of real-time consumer purchasing patterns.

This strategy can help companies benefit from economies of scale during production but poses risks associated with overproduction and potential excess inventory if the forecasts are inaccurate. In contrast, strategies that involve producing based on current sales data, adjusting inventory based on customer feedback, or reducing production to match supplier capabilities are more responsive to actual demand, which generally aligns with a supply-pull strategy where production is driven by customer requirements and market signals.

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