Push System In Inventory Management

1136 Words5 Pages
Table 1.1 The Traditional Push System & The Pull System Sr.no. TRADITIONAL PUSH SYSTEM THE PULL SYSTEM 1 In traditional manufacturing, an item is released for production at a specified time with an associated due date. The Pull system focuses on the output of the system rather than the input. 2 The items move through a sequence of operations. Finished products are pulled from the final operation in response to firm customer orders. 3 When an operation is finished, the item is “pushed” to the next. This leads to a chain reaction, with each station pulling material from its preceding station. 4 Hopefully, at the end of it all, the due date will be met. JIT uses the “Kanban” systems to control the flow of material with very little WIP (work-in-process)…show more content…
Inventory management is the process of efficiently overseeing the constant flow of units into and out of an existing inventory. This process usually involves controlling the transfer in of units in order to prevent the inventory from becoming too high, or dwindling to levels that could put the operation of the company into jeopardy. Competent inventory management also seeks to control the costs associated with the inventory, both from the perspective of the total value of the goods included and the tax burden generated by the cumulative value of the inventory. Types of Inventory Management: Properly managing inventory requires a system of some sort. It doesn’t matter if the system consists of writing inventory levels on the back of an envelope or using the most sophisticated radio frequency identification system. For the small business deciding on an inventory management system, choosing the right one boils down to which system holds the most value for the company. INFORMATION & REPORTS DEMAND FORECASTING STOCK…show more content…
It is also known as Selective Inventory Control. Policies based on ABC analysis: A ITEMS: very tight control and accurate records. B ITEMS: less tightly controlled and good records. C ITEMS: simplest controls possible and minimal records. The ABC analysis provides a mechanism for identifying items that will have a significant impact on overall inventory cost, while also providing a mechanism for identifying different categories of stock that will require different management and controls. The ABC analysis suggests that inventories of an organization are not of equal value. Thus, the inventory is grouped into three categories (A, B, and C) in order of their estimated importance. 'A' items are very important for an organization. Because of the high value of these ‘A’ items, frequent value analysis is required. In addition to that, an organization needs to choose an appropriate order pattern (e.g. Just-In-Time) to avoid excess capacity. 'B' items are important, but of course less important than ‘A’ items and more important than ‘C’ items. Therefore ‘B’ items are intergroup items & ‘C’ items are marginally

More about Push System In Inventory Management

Open Document