Which of the following describes a model where the supply chain reacts to consumer demand?

The demand-driven model is characterized by its ability to respond flexibly to consumer needs and preferences in real time. In this model, production and distribution processes are initiated based on actual consumer demand rather than forecasts. This ensures that inventory levels are more closely aligned with what customers are actually purchasing, reducing excess stock and the risk of stockouts.

In a demand-driven model, information about customer orders is used to trigger actions throughout the supply chain, allowing companies to quickly adapt their operations to changing market conditions. This agility is a key advantage, as it leads to improved customer satisfaction and more efficient resource management.

Other models, such as the push-based model, rely heavily on forecasts and demand predictions to push products through the supply chain, often leading to inefficiencies. The supply-driven model focuses more on the production capabilities of suppliers rather than on consumer demand. The replenishment-driven model typically refers to processes designed for restocking products based on predefined inventory levels, rather than directly reacting to actual consumer purchases.