A leading pharmaceutical company is working on building the capability to produce some of their key input materials instead of externally sourcing them. What is this strategy known as?

A pull system is a supply chain strategy that focuses on producing goods in response to actual customer demand rather than forecasting. This approach optimizes inventory levels and reduces waste but does not specifically address the production of key input materials, making it unrelated to the strategy described in the question.

Postponement refers to a strategy where a company delays the final production or assembly of a product until customer demand is clearer. While it can improve flexibility and responsiveness, it does not involve the in-house production of key input materials, thus making it an unsuitable choice for the question.

Forward integration is a strategy where a company expands its operations to include the direct distribution or retail of its products. This approach focuses on moving further down the supply chain rather than producing input materials, making it irrelevant to the context of the question.