Push Production system is helpful to run the production lines without any stops and less inventory.
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Pull System of Inventory Control
With this strategy, companies only make enough product to fulfill customer's orders. One advantage to the system is that there will be no excess of inventory that needs to be stored, thus reducing inventory levels and the cost of carrying and storing goods.
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The push production system involves the running of the production system without any stops and less inventory since the production is driven by the demand of the customers through the methods of 'forecasting'
Explanation:
- The push inventory system involves in the practice of keeping less inventory to avoid wastage and increase in costs. The inventory is ordered on the basis of the demand of the people. The demand of the customers are anticipated before ordering inventory stock for manufacturing. The products are pushed through the 'supply chain' where they are eventually delivered to the end users.
- A strategy of 'push' are part of the 'promotional plan' for creating the demand of the customers. There are many methods adopted by the marketing companies to promote their products through discounted sales, loyalty coupon and many other ways.
- Offering discounts enhances the interest of the customers and they are prompted to visit the stores to purchase their products. Pushing production strategy involves encouraging the customers towards the products through various marketing strategies.
To know more about push production strategy
Explain push system and pull system with its significance in operations management
https://brainly.in/question/3478273
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