Supply chain management (reply to an answer) Case Study

Supply chain management (reply to an answer) - Case Study Example A few reasons such as maximizing economies of scale entails considerable business investment risks because it is not very fluid in terms of market response (Hugos 147). This system is also not suitable for industries that can change quickly on trends, like the apparel industry (Daspal 1). The converse of the push-concept is the pull-system modeled on Toyota which relies on actual customer demand and works backwards along the supply chain. However, this kind of system requires a near-perfect method of efficient logistics that has short production cycles; long lead times can be shortened by maximum efficiency along the supply chain. This is what computer giant Dell did, in contrast to the estimated losses suffered by Compaq when laptops were not available. This system is not speculative, in the sense it anticipates future customer demand, but is reactive which is more accurate in terms of meeting actual customer demand. I agree that supply chain efficiency is about minimizing inventory levels to reduce the risk of product obsolescence. However, there are additional benefits in using the Just-in-Time (JIT) concept pioneered by Toyota that can be implemented, such as lower working capital, a mass customization and postponement of demand (Coyle 661) that lowers costs to b enefit clients. Coyle, John J., Langley, John C., Gibson, Brian J., Novack, Robert A. and Edward J. Bardi. Supply Chain Management: A Logistics Perspective. Mason, OH, USA: South-Western Cengage Learning, 2008.