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Inventory Market: Push and Pull Systems Explained
Inventory is one of the most visible components of a supply chain, yet managing it effectively is far more intricate than simply counting products on shelves. Every unit represents capital, storage capacity, labor, and a prediction about future demand. When businesses decide how much inventory to purchase, produce, or replenish, they generally rely on one of two broad philosophies: producing or moving goods based on anticipated demand, or responding to actual demand as it occurs. This distinction is commonly expressed through the push or pull system debate. A push system attempts to anticipate what customers will need. A pull system responds to what customers actually need. Neither approach is universally…


