Push vs Pull inventory systems.

Push vs Pull inventory systems.

• A. Push uses forecasting to push replenishment; pull is demand-driven, producing and delivering in response to actual orders
• B. Push uses actual orders; pull uses forecasting
• C. Push and Pull are identical
• D. Pull uses forecasting to push replenishment

Answer: (A)

Push vs pull inventory systems centers on how replenishment decisions are triggered. In a push system, forecasting drives replenishment; plans are made in advance and production or ordering is pushed into the supply chain based on expected demand. In a pull system, replenishment is triggered by actual demand or usage, so production and delivery occur in response to real orders rather than forecasts. This distinction matters because forecasting-driven pushes can smooth capacity and take advantage of economies of scale, but risk excess inventory if demand is overestimated. Demand-driven pulls reduce inventory and obsolescence but can lead to longer lead times if orders arrive slowly or variability is high. The statement that best matches this concept says that forecasting fuels replenishment in the push approach, while the pull approach remains demand-driven and reacts to actual orders. The other choices mix up who uses forecasting versus actual orders or claim the systems are identical, which they are not, and they misattribute forecasting to pull.

Push vs pull inventory systems centers on how replenishment decisions are triggered. In a push system, forecasting drives replenishment; plans are made in advance and production or ordering is pushed into the supply chain based on expected demand. In a pull system, replenishment is triggered by actual demand or usage, so production and delivery occur in response to real orders rather than forecasts. This distinction matters because forecasting-driven pushes can smooth capacity and take advantage of economies of scale, but risk excess inventory if demand is overestimated. Demand-driven pulls reduce inventory and obsolescence but can lead to longer lead times if orders arrive slowly or variability is high.

The statement that best matches this concept says that forecasting fuels replenishment in the push approach, while the pull approach remains demand-driven and reacts to actual orders. The other choices mix up who uses forecasting versus actual orders or claim the systems are identical, which they are not, and they misattribute forecasting to pull.