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 refers to a production strategy where goods are produced based on actual customer demand rather than forecasted demand. This approach focuses on minimizing inventory levels and responding quickly to customer needs but does not involve the ownership or production of input materials. Therefore, it does not align with the strategy of producing key input materials internally.

Postponement is a supply chain strategy that involves delaying the final production or customization of a product until demand is more clearly understood. While this approach can enhance flexibility and responsiveness, it does not pertain to the internal production of input materials, making it unrelated to the strategy described in the question.

Forward integration occurs when a company expands its operations to control distribution or retail aspects of its product line. While forward integration is an expansion strategy, it does not involve the internal production of input materials, which is the focus of the strategy in the question.