Register now or log in to join your professional community.
Now a days, due to ever demanding markets it is required to work on the combination of both the types in Supply Chain. Normally, every company has few top customer who contribute to the major sales of company and by following simple pareto analysis the same can be identified. The similar analysis can help in identifying the top products which these customers BUY, which can follow the PUSH mechanism to support these TOP customers of the company and provide maximum customer satisfaction by reducing the lead time for these customers. Whereas, for others we can follow the PULL strategy.
I agree with Abdou warshan .
Push type" is represented by "Make to Stock" (MTS) in which the production is not based on actual demand and "Pull type" is represented by "Make To Order" (MTO) in which the production is based on actual demand.
Lean system looks for cost reduction and increasing inventory turns so it follow MTO technique.
Best regards.
very well executed reply and explanation by Mr. Abdou
"Push type" means Make to Stock in which the production is not based on actual demand.
"Pull type" means Make To Order in which the production is based on actual demand. In supply chain management, it is important to carry out processes halfway between push type and pull type or by a combination of push type and pull type.Supply Chain Management (SCM) is to create a solution i.e. "supply" for a goal or issue, i.e. "demand". Supply chain models of "Push type" and "Pull type" are opposite in terms of a demand and supply relationship. "Push type" is represented by "Make to Stock" (MTS) in which the production is not based on actual demand and "Pull type" is represented by "Make To Order" (MTO) in which the production is based on actual demand.One of the major reasons why supply chain management currently receives so much attention is that information technology enables the shifting of a production and sales business model from "Push type" to "Pull type". Pull-type supply chain management is based on the demand side such as Just-in-Time (JIT) and CRP (Continuous Replenishment Program) or actual demand assigned to later processes. Therefore, unlike the Push-type method it is not Make to Stock, which is based on demand forecast. While inventory is kept to a minimum, products can be supplied with short lead times and at high speed. At the point where "Pull type" starts to supply operations triggered by actual demand, it is like an elevator. An elevator starts when a button is pressed even if there is only one passenger. On the other hand, the "Push type" can be considered as an escalator. An escalator continues to supply (push) regardless of whether there is actual demand (passenger). In addition, "Push type" corresponds to a model for trains, buses, and airplanes for which supply (push) is based on demand forecast by time period and route. There may be various forms between "Push type" and "Pull type" depending on inventory forms of materials, work in progress (WIP), and finished items and how to deal with the actual demand in supply chain management.
Lean systems use the pull method of material flow
