It's about Logistics. It said about a pull VS push inventory deployment. Please simplify and clearify this.
Answer:
Crikey Push Vs Pull, operations management.
Push management; letting manufacturing and purchasing drive stock into the warehouse based on their optimum batch sizes and effectively builiding stock to ensure optimised production cycling.
Pull management: letting the orders and warehousing and delivery requirements set the production schedules. Usually requires Lot For Lot production cylcing which means less inventory, less tied up cash flow, but not as good utilisation of production and smaller batch sizes..
There is a case for both dependant on the industry and the MRPII IT system and its capabilities..I have worked within both, and they both work.depends on the customer, depends on the business.
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