Which forecasting approach uses projected demand to drive planning?

Which forecasting approach uses projected demand to drive planning?

• A. Push uses projected demand to drive planning
• B. Push updates forecasts based on actual sales and consumption
• C. Pull uses projected demand to drive planning
• D. Pull ignores actual sales

Answer: (A)

In push planning, decisions about production quantities, timing, and inventory are driven by a forecast of future demand. The projected demand acts as the signal that pushes production and procurement forward, so products are planned and stocked in anticipation of what is expected to be needed, rather than waiting for actual orders. This contrasts with pull planning, which is activated by real demand signals like customer orders or point-of-sale data. Updates based on actual sales are part of adjusting forecasts, not the primary driving mechanism, and a system that ignores actual sales would not respond to real demand.

In push planning, decisions about production quantities, timing, and inventory are driven by a forecast of future demand. The projected demand acts as the signal that pushes production and procurement forward, so products are planned and stocked in anticipation of what is expected to be needed, rather than waiting for actual orders. This contrasts with pull planning, which is activated by real demand signals like customer orders or point-of-sale data. Updates based on actual sales are part of adjusting forecasts, not the primary driving mechanism, and a system that ignores actual sales would not respond to real demand.