The Old Paradigm: Push Strategies Production decisions based on long-term forecasts Ordering decisions based on inventory forecasts What are the problems with push strategies? Inability to meet changing demand patterns Obsolescence of supply chain inventory As demand for certain products disappears The bullwhip effect: Specifically,the bullwhip effect ■Excessive inventory leads to inefficient resource Excessive production variability utilization,because planning ■Poor service levels and managing are much more Product obsolescence difficultThe Old Paradigm: Push Strategies „ Production decisions based on long-term forecasts „ Ordering decisions based on inventory & forecasts „ What are the problems with push strategies? „ Inability to meet changing demand patterns „ Obsolescence of supply chain inventory „ As demand for certain products disappears „ The bullwhip effect: „ Excessive inventory „ Excessive production variability „ Poor service levels „ Product obsolescence Specifically, the bullwhip effect leads to inefficient resource utilization, because planning and managing are much more difficult