In the Push inventory system, a company will build up its inventory (beyond their present demand) to take advantage of quantity discounts and other economies of scale In a Pull inventory system, a company will not order (or produce) inventory until it is needed (due to either increased demand or production) Provide an example of a company that uses the Push system and example of a company that uses the Pull system What is it about these company's processes, products or services that make them a good candidate for the particular type of inventory system they use Do you feel that one of these systems has an advantage over the other system Explain Does the type of product demand or the production process used have any bearing on the type of inventory system the company should use Explain I know companies like Nike, Addidas use the push system and Coca cola uses the pull system So, depending on your business decides which is better Just want to make sure I'm correct If I'm selling clothes from my clothing line, then push would be the better system If I'm opening a transportation business, then I would use the pull system Am I correct

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 29, 2024

In the Push inventory system, a company will build up its inventory (beyond their present demand) to take advantage of quantity discounts and other economies

In the Push inventory system, a company will build up its inventory (beyond their present demand) to take advantage of quantity discounts and other economies of scale.In a Pull inventory system, a company will not order (or produce) inventory until it is needed (due to either increased demand or production).

Provide an example of a company that uses the Push system and example of a company that uses the Pull system.
What is it about these company's processes, products or services that make them a good candidate for the particular type of inventory system they use?
Do you feel that one of these systems has an advantage over the other system?Explain.
Does the type of product demand or the production process used have any bearing on the type of inventory system the company should use?Explain.

I know companies like Nike, Addidas use the push system and Coca cola uses the pull system. So, depending on your business decides which is better. Just want to make sure I'm correct. If I'm selling clothes from my clothing line, then push would be the better system. If I'm opening a transportation business, then I would use the pull system. Am I correct?