Mumbai, , India
Bid Manager, Contract Management, Procurement
0 Comment | 18 Views | 11 Nov 13  | Amrendra Kumar Saha
Hi, Greetings A push strategy typically involves carrying inventory and quotpushingquot sales through the sales and/or distribution channels. Think a car dealer who has inventory to sell quotpushquot to customers. In a pull model sales initiate the process. Think for example airplanes. First the plane is sold then the process of manufacturing it is executed. Another common examples are the drop ship model that Amazon uses and the assemble-to-order model that Dell operates for PCs. Pull model is part of Just in Time JIT. Any product which are easily available at sales point is the outcome of Push model and Any Product which requires Processing time after booking of Order at sales point is outcome of Pull Model. The day to day easiest example of Push strategy is quot Buffet lunch/Dinner quot but ala-carte order to make menu is the example of pull Model. McDonald Chicken masala burger or Kerala Special Masala Dosa are based on pull model. Push model creates finished product Inventory based on forecast of sales while Pull model needs minimum inventory just to continue the business. Regards, A.K.SAHA

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