Pull inventory
Pull inventory, also known as a just-in-time inventory system, is a method of managing inventory in which goods are only produced or acquired in response to customer demand. This contrasts with traditional inventory management systems, in which goods are produced in advance and stored until they are needed.
One of the key benefits of pull inventory is that it helps reduce carrying costs and minimize waste. By only producing goods when they are needed, companies can avoid holding excess inventory that may become obsolete or spoil before it can be sold.
Another advantage of pull inventory is that it can help companies respond more quickly to changes in customer demand. Because goods are only produced in response to actual orders, companies can quickly adjust their production schedules to meet changing customer needs.
- Reduces carrying costs
- Minimizes waste
- Quick response to changes in demand
Overall, pull inventory is a valuable tool for companies looking to improve efficiency and reduce costs in their supply chain management.
For more information, you can visit the Wikipedia page on pull inventory.