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MGMT614 Supply Chain Management GDB Fall 2020 Solution / Discussion

Total marks: 10
Due date: 18th December, 2020

To reinforce the concepts of “Pull” and “Push” strategies in Supply chain management.

A Japanese car manufacturing company has started its operations in Pakistan. It has established an assembly plant in Karachi. The company has proficiency in making loader trucks that are actively used for transporting materials. The company offers many variants of the trucks depending on the need of the buyers. The demand for loader trucks is increasing day by day, but the type of truck required differs based on the task to be performed.

A unique feature that the company is offering is to let the customers customize or modify a truck according to their needs. This means that all the trucks have the same engine and chassis, whereas the customers can choose different types of axles for the type of load they want to carry, different shock absorbers and finally a color of their choice making a finished product ready for use by the consumer. Since the company is new in the market, it is having difficulty in deciding how to manage its supply chain. The company is unable to decide whether to produce the final products in anticipation of customer demand i.e. to use a PUSH supply chain strategy or to wait for the customer orders to initiate producing the vehicle from scratch i.e. to employ a PULL supply chain strategy.
You are hired as the Supply chain manager of the company and have been given the task to identify the best supply chain strategy according to the given scenario.

Being the supply chain manager of the company:
Do you favor a complete PUSH supply chain strategy?
Are you inclined towards a complete PULL supply chain strategy?
Are you going to use a combination of both PUSH and PULL strategy i.e. a hybrid strategy by identifying the decoupling point? In this case you also have to mention where the decoupling point exists.
You need to provide at least three arguments in the favor of your choice.

(1 mark for the correct strategy + 3*3 = 9 marks for the arguments)

NOTE: You can choose only one strategy out of the three mentioned above.
 Be CONCISE and PRECISE. Irrelevant information will result in deduction of marks.
 You are supposed to provide a brief answer in bulleted form with proper reasoning.
 The length of your answer must not exceed “300” words. This does not mean that the

answer should be extended with unwanted details just for the sake of completing “300”
words. If you can justify your answer in less words, it is totally acceptable.
 Your answer should be to the point without any unnecessary details. Also it should not be
short enough so that no understanding can be developed from it.
 Provide Logical points in your own words.
 Watch video lectures and consult book/notes to complete the assignment
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Referencing Guidelines:
 Use APA style for referencing and citation. For guidance search “APA reference style” in
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 Any of the given instructions is not followed
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