ABSTRACT
The Push–Pull Inventory Strategy is based on supply chain ‘flow’ principles that allow companies to determine whether their business requires a ‘push’ or ‘pull’ inventory system. The pull concept is essentially the kanban signal approach, where demand at the customer end of the supply chain pulls product towards the consumer market, supported by a flow of components and resources determined by the same demand. The pull system is based upon demand being created from the customer. The push system is based upon pushing products into the market irrespective of the demand for the product. Push–Pull Inventory strategies are mainly used as an overarching guide to determine the flow in the supply chain and assist with supply chain scheduling. Techniques such as demand forecasting and supply chain optimisation are complex subjects that cannot simply be addressed in the relatively simplistic ways.
