Push Vs Pull System

Push Vs Pull System

Push Vs Pull System
Push System • A schedule is prepared in advance for a series of workstations,
and each workstation pushes its completed work to the next
station

Pull System • With a pull system, workers go back to previous stations and
take only the parts or materials they need and can process
immediately.

• When the material has been taken, workers at the previous

station know it is the time to produce more, that too which
product.

• Prevents over/ under production

Demand Forecasting
 Forecasting

• We assume that what has happened in past will repeat itself

• What if the product has no background or is a new one?

• Can the demand prediction of one set of products be better than others?

What all may go wrong … if we use the same method for all of
them
 Certain Characteristics of Forecast

• Forecasts are always inaccurate and should thus include both the
expected value of the forecast and the measure of forecast error

• Long term forecasts are less accurate than short term forecasts

• Aggregate forecasts are usually more accurate than disaggregate

forecast.
Components of Forecast : If product has a history

• Companies must identify the factors that influence future demand and then
ascertain the relationship between these factors and future demand
• Past demand (and not past sales)
• Lead time of product replenishment
• Planned advertising or marketing efforts
• Planned price discounts
• State of the economy
• Actions that competitors have taken

But what if no history……………

Forecasting Methods

1. Qualitative 2. Time Series

• Primarily subjective • Use historical demand
• Rely on judgment only
• Best with stable demand

3. Causal 4. Simulation
• Relationship between • Imitate consumer
demand and some choices that give rise to
other factor demand
Choosing the Right Forecast