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demand pull based system

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 8 months ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
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  • October 3, 2021 at 2:51 pm #636908
    johnbriane
    • Topics: 146
    • Replies: 147
    • ☆☆☆

    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 #636917
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49583
    • ☆☆☆☆☆

    There will be zero inventory of finished goods.

    Your second paragraph is correct.

    October 6, 2021 at 2:54 am #637074
    johnbriane
    • Topics: 146
    • Replies: 147
    • ☆☆☆

    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 ..

    October 6, 2021 at 7:48 am #637107
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49583
    • ☆☆☆☆☆

    There will be work in progress during the time it takes to make the order.

    October 6, 2021 at 2:10 pm #637131
    johnbriane
    • Topics: 146
    • Replies: 147
    • ☆☆☆

    Sir
    Could you please explain this with an example

    There will be work in progress during the time it takes to make the order.

    October 6, 2021 at 3:22 pm #637137
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49583
    • ☆☆☆☆☆

    If 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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