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Process View of a Supply Chain?
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a) Cycle view: processes in a supply chain are divided into a series of cycles, each performed at the interfaces between two successive supply chain stages

b) Push/pull view: processes in a supply chain are divided into two categories depending on whether they are executed in response to a customer order (pull) or in anticipation of a customer order (push).

Cycle View of Supply Chains.

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  • Each cycle occurs at the interface between two successive stages
  • Customer order cycle (customer-retailer)
  • Replenishment cycle (retailer-distributor)
  • Manufacturing cycle (distributor-manufacturer)
  • Procurement cycle (manufacturer-supplier)
  • Cycle view clearly defines processes involved and the owners of each process. Specifies the roles and responsibilities of each member and the desired outcome of each process.

Push/Pull View of Supply Chains

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  • Supply chain processes fall into one of two categories depending on the timing of their execution relative to customer demand
  • Pull: execution is initiated in response to a customer order (reactive)
  • Push: execution is initiated in anticipation of customer orders (speculative)
  • Push/pull boundary separates push processes from pull processes
  • Useful in considering strategic decisions relating to supply chain design – more global view of how supply chain processes relate to customer orders
  • Can combine the push/pull and cycle views
  • The relative proportion of push and pull processes can have an impact on supply chain performance.
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