4.2.2 Push and pull control methods
Push inventory control (pp340 - 342) is fairly straightforward and is based on the fact that the product has to be stored at supplying points after production.
Activity 4.1
Box 10.4 in your set text (pp. 340-342) uses the example of tuna processing to explain this.
Please work your way through this carefully to understand the concept clearly.
The study gets a little bit more elaborate when we start looking at the Pull Inventory Control (starting from page 342). It is useful to work through the worked examples and calculations and understand how the process is conducted. You will see, for instance, how a reorder point is established, with an example given on page 340. This example is carried forward in other places to illustrate the issues of data inaccuracies and non-instantaneous re-supply.
The next section in the text, advanced pull inventory control , takes you to further practical complexities that can be expected to occur in normal operations. These take into account the concept of total cost and service levels.