May 2024
Beginner
216 pages
7h 52m
English
Content preview from Enterprise Resource Planning: A Managerial Perspective by Pearson
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176 Enterprise Resource Planning
is estimated is referred to as push strategy. The responsiveness in push strategy is much less, i.e., the
manufacturer will take a long time to respond to the changes in the demand. If the demand decreases, an
inventory may build up; and there may be unlled orders (back orders) if the demand increases. Push
strategy works if the product demand is stationary and the uctuation in the demand does not cause
inventory built-up or too many back orders.
A pull strategy is based on the demand information originating at the customer’s end and is com-
municated to the manufacturer by wholesaler. The wholesalers get ...
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