Which of the following is true of a push manufacturing system
A) It leads to high work-in-process inventories and high levels of indirect labor and overhead.
B) In this system, just enough new parts are procured to replace those withdrawn.
C) In this system, finished goods are made to coincide with the actual rate of demand.
D) It leads to minimal inventories and maximum responsiveness.

Question

Quizplus · Accepted Answer

In a push manufacturing system, production planning is based on forecasted demand rather than actual demand, leading to high levels of work-in-process inventories and additional indirect labor and overhead costs.

Which of the Following Is True of a Push Manufacturing