Which statement describes push versus pull inventory?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the FBLA Introduction to Supply Chain Management Test with flashcards and multiple-choice questions. Each question includes hints and detailed explanations. Maximize your success rate!

Multiple Choice

Which statement describes push versus pull inventory?

Explanation:
Push versus pull inventory describes whether production and stock levels are planned in advance or triggered by actual demand. In a push system, items are produced ahead of time based on forecasts, with inventory built to meet predicted demand. In a pull system, replenishment happens in response to real customer orders, keeping inventory lean and more responsive. The statement that push is produced in anticipation and pull is driven by demand best captures this distinction. The other descriptions mix up which system is forecast-driven versus demand-driven, or bring in unrelated ideas like robotics or inventory being stored only in transit.

Push versus pull inventory describes whether production and stock levels are planned in advance or triggered by actual demand. In a push system, items are produced ahead of time based on forecasts, with inventory built to meet predicted demand. In a pull system, replenishment happens in response to real customer orders, keeping inventory lean and more responsive. The statement that push is produced in anticipation and pull is driven by demand best captures this distinction. The other descriptions mix up which system is forecast-driven versus demand-driven, or bring in unrelated ideas like robotics or inventory being stored only in transit.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy