A build-to-order supply-chain model is also called a?

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

The build-to-order supply-chain model is accurately referred to as a demand-driven model because it operates on the principle of responding directly to customer demand rather than predicting it. In this model, products are not manufactured until an order is received, allowing for a high degree of customization and reducing excess inventory.

This approach contrasts with other models, such as supply-driven models, which may prioritize production capacity or resource availability over actual customer orders. The replenishment-driven model typically focuses on restocking inventory based on predetermined levels rather than on direct customer requests. Push-based models involve forecasting and producing goods in anticipation of demand, which can lead to inventory buildup and increased costs if actual demand does not align with predictions.

Thus, identifying the build-to-order supply-chain model as demand-driven highlights its core focus on meeting customer needs directly and effectively.

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