Certified Supply Chain Professional (CSCP) Practice Exam

What characterizes a pull system in supply chain management?

1. It is driven by historical data

2. It relies on actual customer orders

3. It focuses on long-term production planning

4. It emphasizes inventory surplus management

The correct answer is: It relies on actual customer orders

A pull system in supply chain management is characterized by its reliance on actual customer orders. This approach means that production and inventory replenishment occur in response to real-time demand, rather than forecasts or historical data. In a pull system, products are made or supplied based on the actual needs of customers, which helps to minimize excess inventory and reduce waste. In contrast to other systems, such as push systems, where production is based on predicted demand or sales forecasts, the pull system's focus on current orders leads to more agile and responsive supply chain operations. This agility allows businesses to adapt quickly to changes in consumer preferences and market conditions, ensuring that they only produce what is necessary at any given time. The other options do not accurately reflect the nature of a pull system. Historical data typically informs push systems, long-term production planning suggests a forecast-driven approach, and emphasizing inventory surplus management contradicts the core principle of pull systems, which aims to maintain lower inventory levels by producing only what is needed when it is needed.