The trend toward "pull" systems where the product is "pulled" in response to demand (as opposed to being "pushed" in advance of demand) increases inventory levels, which can increase total logistics costs even though production costs may decrease.

Question

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The trend towards "pull" systems actually aims to reduce inventory levels and increase efficiency in response to demand, which can decrease total logistics costs while maintaining or improving production costs.

The Trend Toward "Pull" Systems Where the Product Is "Pulled