When a push system is replaced by a pull system, with smaller lot sizes, many benefits can be realized. Which one of the following statements correctly represents one of these benefits?
A) Only simple planning systems are required.
B) More space is required to keep the increased amount of WIP inventory.
C) The inventory level is increased to protect the system from the uncertainty in demand.
D) Cycle time will be increased, resulting in higher machine utilization.

Question

Quizplus · Accepted Answer

A pull system with smaller lot sizes simplifies planning as production is based on actual demand rather than forecasts, reducing complexity.

When a Push System Is Replaced by a Pull System