What characterizes a pull-based supply chain?

A pull-based supply chain is characterized by its responsiveness to actual customer demand rather than forecasts or predictions. This system distinguishes itself from a push-based supply chain, which relies on forecasts to determine the quantity of goods to produce or stock. In a pull-based approach, items are produced and distributed based on specific customer orders, enabling a tailored response to market needs and reducing the risk of overproduction and excess inventory.

This method enhances customer satisfaction by ensuring that products align closely with what customers want, leading to a more efficient use of resources. The reliance on real-time data from customer orders helps the supply chain adapt quickly to changing demand patterns, which is essential in today's dynamic market environments.

Other options, like relying on forecasts or focusing primarily on cost reduction, do not align with the fundamental principle of a pull-based supply chain, which prioritizes agility and responsiveness to demand over pre-emptive inventory management. Thus, the emphasis on operating based on customer demand accurately captures the essence of a pull-based supply chain model.