It is difficult for inventory managers to always know how much inventory to order and when.
The type of inventory control system will depend in large part on what type of product is being produced.
Computer companies, such as Dell, are incorporating the push-pull system, where raw materials and goods are pre-ordered and stored, but the actual computer is not assembled until the customer makes an order.
PUSH hides waste, PULL exposes waste. In simple terms, if machines are to be kept busy, excess manpower is required.
If manpower is to be kept busy, excess machines are required. If customers are to be satisfied then excess capacity is required.
