Pull Systems Definition
A pull system is a type of inventory management system in which items are only produced or delivered when there is an explicit demand for them. This stands in contrast to a push system, in which items are produced or delivered proactively, without regard for actual demand.
There are several advantages to using a pull system. First, because production is only triggered by customer demand, there is no risk of producing too much inventory, which can tie up capital and lead to markdowns or other clearance costs. Second, a pull system can help avoid the problem of obsolescence, since goods are only produced as needed and are therefore less likely to become outdated before they can be sold. Finally, Pull systems tend to be more responsive to changes in customer demand than push systems, since the latter require production planning and lead times that can make it difficult to adjust output quickly.
Despite these advantages, pull systems also have some drawbacks. First, they can be less efficient than push systems in terms of both time and money, since goods are only produced as needed rather than in batches. Second, they may require more storage space than push systems, since finished goods are not typically kept on hand but instead move directly from production to the customer. Finally, pull systems can be more complex to set up and manage than push systems, since they often involve just-in-time (JIT) manufacturing processes that require tight coordination between different parts of the supply chain.
