In a production factory that has successfully implemented a Pull System, which of the following typically occurs?

In a production factory that has successfully implemented a Pull System, one of the most significant outcomes is less inventory. The Pull System is designed to produce items based on actual customer demand rather than forecasts, which helps to minimize excess inventory. This approach emphasizes producing only what is needed when it is needed, thus reducing waste associated with holding surplus stock.

By reducing inventory, the factory not only cuts holding costs but also increases efficiency, as space that would have been used for storage can be repurposed for production or other value-adding activities. Additionally, lean principles, often associated with Pull Systems, focus on streamlining processes, which often leads to improved quality and quicker response times to customer orders.

The other choices reflect outcomes that are typically not aligned with the goals of a Pull System. For instance, increased prices may occur through other means but are not a direct result of inventory management strategies. Adding inventory contradicts the purpose of the Pull System, which seeks to eliminate excess stock. Similarly, a higher defect rate is generally not a characteristic of a well-implemented Pull System, as the focus on customer demand and efficiency should enhance overall quality control.