Answered: How is a pull system distinguished from…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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How is a pull system distinguished from a push system in production and inventory control?

Expert Solution

Push system:

When considering push system, the decisions regarding production and distribution would be based on the forecasts that were done. If the demand of the product is fluctuating, then the push system is effective when compared to pull system. It is said to be a producer-centric approach in which the manufacturing will be done based on the customer orders.

Push system is inherently driven based on the due-date and it helps to control the release rate and observe the work in process level. In push system, the firm can manufacture everything that they can and they will put it as a stock which can be used when there is a demand for the product. The inventories would be large and waste would be maximum in push system.

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