Which strategy focuses on producing goods based on actual demand rather than forecasts?

The strategy that focuses on producing goods based on actual demand rather than forecasts is demand-driven production. This approach emphasizes responsiveness to customer needs and preferences, which helps reduce the risks associated with overproduction or stock-outs that can arise when relying on forecasts. By aligning production processes directly with real-time demand signals, businesses can enhance efficiency, minimize waste, and improve customer satisfaction.

This concept contrasts sharply with other strategies like push production, which relies on forecasts to decide how much to produce in advance, potentially leading to excess inventory. Similarly, while inventory management strategies deal with how to handle existing stock efficiently, they do not inherently focus on the foundation of production decisions based on actual demand. Cost-reduction strategies seek to minimize expenditures but may not necessarily prioritize aligning production with actual consumer demand.