does this mean that if a company follows a demand pull based system
zero inventory will be maintained always ?
secondly
a demand pull based system means that the time a customer makes an order
the labor team manufactures in such a way that the WIP should not be maintained for the production the customer requested for ..
am i correct with this sir ?
Ask the Tutor ACCA FM
demand pull based system
4y ago#1There will be zero inventory of finished goods.
Your second paragraph is correct.
sir if this statement is correct
" if a company follows a demand pull based system
zero inventory of finished goods will be maintained always "
then is the following idea incorrect ?
" if a company follows a demand pull based system
zero inventory of working progress will be maintained always "
i simply changed the finished goods to working progress to see if there are any differences ..
4y ago#3There will be work in progress during the time it takes to make the order.
Sir
Could you please explain this with an example
There will be work in progress during the time it takes to make the order.
4y ago#5If it takes them a month to produce the goods from start to finish then by definition there is work-in-progress during that month.
However, one feature of demand-pull production is attempting to keep the production time (and therefore the work-in-progress) to a minimum.
Why are you asking this in the Paper FM forum? It is not relevant for Paper FM.
Sign into reply to this topic.