Question

Explain push system and pull system with its significance in operations management

Answer 1

The terms push and pull are used to describe alternative systems for executing the production process in manufacturing organizations. A “push” system is based on forecasted demand that is completed and sent to the next work station or in the case of the final work station is pushed to finished goods inventory. On the other hand, in a “pull” system, the movement of work is based on the requirements of the following work station. Each succeeding workstation pulls (demands) output from the previous workstation as needed. The next work station determines when and how much output is requested. The output from the final workstation is pulled by customer demand or the master production schedule.

The choice between the push and pull systems is based on firm's production–inventory relationship. Firms that have highly repetitive production processes and well‐defined work flows of standardized items require the pull system based on the need for tighter control of inventory and output at the work stations. On the other hand, production processes with long lead times, accurate demand forecasts, a large number of products produced on common production processes, and a diverse customer base tend to use the push systems.

Answer 2

The original meaning of up and pull, as used in operations mgt, logistics and supply chain management. In the pull system production orders begin upon inventory reaching a certain level, while on the push system production begins based on demand (forecasted or actual demand). The CONWIP is a hybrid between a pure push and pure pull system.


The business terms Push & Pull originated in logistics and supply chain mgt but are also widely used in mktg
and also a term widely used in hotel distribution business Wal-Mart is an ex of ah company that uses the push and pull strategy