The Push Principle is a supply chain strategy based on forecasted demand, where goods are produced and distributed according to predicted requirements rather than actual orders. While it can lead to higher inventory levels, it allows for efficient planning of production, transportation, and warehouse operations. Push systems are effective in stable markets with predictable demand and support strategic stock positioning.
Characteristics:
- Production and distribution based on forecasted demand
- Supports planned production and transport scheduling
- May result in higher inventory levels
- Reduces the risk of stockouts for anticipated demand
- Useful for stable or predictable market environments
