Department stores that consistently over estimate demand, and then sell the extra inventory at reduced prices follow a push-based model.
What is the push model?
- In the push model of manufacturing, businesses produce goods in response to expected or predicted demand. Companies push these products onto the market after producing units based on anticipated demand. Businesses must be able to anticipate client demand for both quantity and quality.
- The main goal of a push distribution strategy is to target your advertising efforts. Customers may draw the product through the retail chain towards them, or the product may be pushed in their direction.
- Products are pushed through the channel from production up to the retailers in a push-based supply chain. This indicates that demand forecasts are used to guide production.
- The inputs are chosen based on anticipated demand in a push-model supply chain. For instance, as summer comes to a close and the fall and winter seasons begin, warm jackets are pushed into apparel stores.
Department stores that consistently over estimate demand, and then sell the extra inventory at reduced prices follow a push-based model.
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