Demand pull change

Ogawa (2001) analyzed about demand pull supply chain in Japan. He pointed out that the demand pull supply chain changed the distribution system. 

Antonelli, Christiano, 1998, The Dynamics of Localized Technological Changes The Interaction Between Factor Costs Inducement, Demand Pull and Schumpeterian Rivalry, Economics of Innovation and New Technologies 6, 97-120. 

Innovations trigger technological changes, which may be revolutionary or evolutionary. From our experience, we know that the latter are more common. They are often based on adaptive designs, have shorter gestation periods, have shorter times for market acceptance, and are typically a result of market-pull —something the marketplace demands, i.e., a need exists currently for the product or process. These usually result from a linear model... 

Given zero changeover costs, the EBQ formula obeys the JIT ideal of pull scheduling - only make in response to actual demand. Actual demand, of course, is likely to vary from one day to the next, unlike the assumption for demand rate shown in Figure 6.3 above. Pull scheduling is more sensitive to demand changes, because only what is needed is made. 

A useful summary of levels and trends in mine and smelter production, and of developments in refined metal consumption is provided by the industry metal balance. The balance can be drawn up for particular areas or regional markets, but most commonly covers the Western World, see Table 2.2. It pulls together the various elements of Western World lead supply and demand (including, separately, net trade with the Eastern Bloc in concentrates and refined metal), and focuses attention on the overall balance between them, with metal surpluses or deficits expressed in terms of an apparent change in stocks over a given period (usually a quarter or a year). In this way, the prevailing market position can be (fairly) accurately assessed and compared with developments in price and other market indicators (like reported stocks, turnover, etc). The construction of a metal balance also often forms the basis of forecasts of future trends in supply, demand and price (see Chapter 16). 

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