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In the Push inventory system, a company will build up its inventory (beyond their present demand) to take advantage of quantity discounts and other economies of scale. In a Pull inventory system, a company will not order (or produce) inventory until it is needed (due to either increased demand or production).
Question 1: Provide an example of a company that uses the Push system and example of a company that uses the Pull system.
Question 2: What is it about these company's processes, products or services that make them a good candidate for the particular type of inventory system they use?
Question 3: Do you feel that one of these systems has an advantage over the other system? Explain.
Question 4: Does the type of product demand or the production process used have any bearing on the type of inventory system the company should use? Explain.
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