Question: Question No 3: Supply chain strategy and postponement: Placing orders has a cultural aspect: European customers like to plan in advance, even a year ahead,

Question No 3: Supply chain strategy and

Question No 3: Supply chain strategy and postponement: Placing orders has a cultural aspect: European customers like to plan in advance, even a year ahead, and so they will normally place orders within lead time. Some customers that have long term demands placed orders one year ahead, and then reviewed the actual demand monthly. The non-European customers, on the other hand, including those from America, Australia, Africa, Hong Kong, China, and Taiwan etc., tend not to place long term orders. In other words, the risk of building inventory is high because uncertainty of demand is relatively high. As customer demand reflects orders on hand, R&D applies the pull strategy for finished goods. Share your understanding regarding push pull view of DELL supply chain and their practices in all over the world. (10 Marks)

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