How is a Pull System different from a Push system?

A Pull System is fundamentally different from a Push System in that it is driven by actual customer demand rather than forecasts. In a Pull System, production and inventory levels are based on specific customer orders, which means that items are only produced when there is a confirmed demand for them. This approach helps to minimize waste and reduce excess inventory, as resources are allocated and products are created only when needed.

On the other hand, a Push System operates based on projected demand using forecasts, often leading to overproduction and higher inventory levels. Since it does not respond directly to customer orders, there can be a mismatch between what is produced and what customers actually want, resulting in unsold goods and wasted resources.

This distinction between relying on real-time orders versus estimates is crucial for understanding the efficiency and responsiveness of manufacturing processes. Thus, the focus on actual customer orders in a Pull System is what sets it apart and makes it more adaptable in a customer-driven market.