Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › demand pull based system
- This topic has 5 replies, 2 voices, and was last updated 3 years ago by
John Moffat.
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- October 3, 2021 at 2:51 pm #636908
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 ?October 3, 2021 at 4:00 pm #636917There will be zero inventory of finished goods.
Your second paragraph is correct.
October 6, 2021 at 2:54 am #637074sir 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 ..
October 6, 2021 at 7:48 am #637107There will be work in progress during the time it takes to make the order.
October 6, 2021 at 2:10 pm #637131Sir
Could you please explain this with an exampleThere will be work in progress during the time it takes to make the order.
October 6, 2021 at 3:22 pm #637137If 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.
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