A Newer Paradigm: Pull Strategies But pull-based systems don't work in all cases Difficult to implement when lead times are so long that it is impractical to react to demand information Harder to take advantage of economies of scale in manufacturing and transportation
A Newer Paradigm: Pull Strategies But pull-based systems don’t work in all cases : Difficult to implement when lead times are so long that it is impractical to react to demand information Harder to take advantage of economies of scale in manufacturing and transportation
Think-Pair-Share Take 2 min.to think about the questions below,and discuss with your neighbors. What are the advantages of push systems? Economies of scale in manufacturing and transportation What are the advantages of pull systems? Decrease in inventory at retailers and manufacturers Decrease in variability in the system Better response to changing markets Is there a system that has the advantages of both systems? Push and pull systems
What are the advantages of push systems? Economies of scale in manufacturing and transportation What are the advantages of pull systems? Decrease in inventory at retailers and manufacturers Decrease in variability in the system Better response to changing markets Is there a system that has the advantages of both systems? Push and pull systems Think – Pair – Share Take 2 min. to think about the questions below, and discuss with your neighbors
Push-Pull Supply Chains The Supply Chain Time Line Suppliers Customers PUSH STRATEGY PULL STRATEGY Low Uncertainty High Uncertainty Push-Pull Boundary
Push-Pull Supply Chains PUSH STRATEGY PULL STRATEGY Low Uncertainty High Uncertainty The Supply Chain Time Line Customers Suppliers Push-Pull Boundary