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Push and Pull Simulations in
Supply Chain
An Overview and Comparison
1. Push Simulation:
- Definition: In a push-based system, production
decisions are made based on forecasts and
predictions.
- Characteristics:
- Production Planning: Production schedules
are determined in advance based on expected
demand.
- Inventory Management: Finished goods are
produced and stocked in anticipation of customer
orders.
- Risk of Overproduction: There's a risk of
producing more goods than the actual demand,
leading to excess inventory and potential waste.
2. Pull Simulation:
- Definition: In a pull-based system, production
and distribution are initiated in response to actual
customer demand.
- Characteristics:
- Customer Demand-Driven: Production and
distribution are triggered by real-time demand
signals from customers or downstream processes.
- Reduced Inventory Levels: Inventory levels
are kept to a minimum as goods are produced on
a just-in-time basis.
- Flexibility: The system is more responsive
to changes in customer demand.
3. Advantages of Pull Simulation:
- Reduced Inventory Costs
- Increased Responsiveness
- Efficiency: Resources are used more efficiently
as production is aligned with actual demand.
4. Disadvantages of Pull Simulation:
- Complexity: Implementing pull systems may
require sophisticated demand forecasting and
real-time communication systems.
- Risk of Stockouts: If demand exceeds
expectations, there is a risk of not having enough
inventory to meet customer needs.

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Push and Pull Simulations in Supply Chain.pptx