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Sangita
Sangita
Intuitively attractive:
– Reduced lead times through the ability to better
anticipate incoming orders from the retailers.
– Reduced inventory since inventory levels increase
with lead times
– Less variability in the system
– Decreased inventory at the manufacturer due to the
reduction in variability.
Implementation of Pull-Based Systems
• Often difficult to implement
– when lead times are long impractical to react
to demand information.
– more difficult to take advantage of economies
of scale