6.6.1 Push systems
A supply chain , at least at one end, has the customer interface where the demand of the customer intervenes in the firm's business process. So, at that stage, demand will meet the processes made in anticipation of future demand. This is the push/pull boundary. A push based system will have the boundary at the downstream end. A supply chain of a typical manufacturing firm is a push system. The manufacturer manufactures and amount of goods based on forecast demand and pushes the stock downstream to be available at various locations and retailer outlets. Every store in which a customer can walk in and buy off the shelf without transmission of any prior intention to purchase the item is an example of a push/pull boundary of a push type supply chain system. The uncertainties associated with forecasts (remember the bullwhip effect) makes it imperative that safety stocks be kept; whereas unanticipated demand variability ensures that production requirements have to be geared up or down to meet the changing market dynamics. These all add to the inefficiencies associated with push type systems.
In your text
Read Section 5.2.1 in your text.