Which statement describes push versus pull inventory?

Which statement describes push versus pull inventory?

• A. Push inventory is produced in anticipation; pull inventory is driven by demand.
• B. Push inventory is driven by customer demand; pull is produced in anticipation.
• C. Push inventory is produced by advanced robotics.
• D. Pull inventory is stored only in transit.

Answer: (A)

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.