Page 260 - SBL Integrated Workbook STUDENT 2018

Chapter 20

1.2 Push vs pull system

Push system

Planning Production Sales

 production design, quality and volume are led by the manufacturer

 little product personalisation

 aims to reduce set-up costs and gain economies of scale.

Pull system

Planning Production Sales

 customers have a greater say

 products are made to order

 aims to reduce inventory levels and be more responsive to customer needs

 often relies on e-commerce (and e-procurement).

Illustrations and further practice

Now try TYU question 1.

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