Compare and Contrast Anticipatory and Responsive Business Models

Compare and Contrast
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Compare and Contrast
Supply chain management consists of the collaboration that firms engage in to leverage strategic positioning of goods and services. The main difference between anticipatory and responsive supply chain model is the timing. While the anticipatory model seeks to produce products based on forecasts and promotional plans in the market, the responsive business model seeks to eliminate or reduce forecast reliance by joint planning and rapid information exchange between the participants in the supply chain. In an anticipatory model manufacture of products is based on the market forecasts while the retailers and distributers of the products undertake their operations based on the forecasts and anticipation of future events. This creates a difference between the original plans of a firm and the actual outcome because the forecasts are usually wrong (Crandall, 2014).
The responsive model is more popular in the supply chain st...