PUSH SYSTEM Meaning and
Definition
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A push system refers to a method of inventory management and supply chain logistics where goods or services are sent based on the forecasted demand or an anticipated need. It is a proactive approach in which suppliers or manufacturers produce and distribute their products to retailers or customers without waiting for a specific order.
In a push system, the decision of what and how much to produce is determined by the anticipating demand. This is often based on historical sales data, market trends, or forecasts. The intention is to keep a sufficient stock of products available to meet potential customer demand at any given time.
This system operates on the assumption that customers will purchase the goods or services produced and distributed to them. Goods are push-generated from the manufacturer's end to the customer without any specific request or order. Consequently, the inventory levels are controlled by the manufacturer or supplier rather than the customer.
However, one of the disadvantages of a push system is the risk of overproduction or excessive inventory buildup if the actual customer demand deviates significantly from the anticipated forecasts. This can lead to wastage, storage costs, or inventory obsolescence.
Conversely, a push system enables faster fulfillment and delivery compared to on-demand or pull systems. It ensures that products are available and ready for customers or retailers, promoting short lead times and reducing waiting or delivery times.
Overall, a push system in supply chain management aims to proactively serve potential customer demands, but it requires careful forecasting and monitoring to avoid unnecessary costs and inefficiencies.
Common Misspellings for PUSH SYSTEM
- oush system
- lush system
- -ush system
- 0ush system
- pysh system
- phsh system
- pjsh system
- pish system
- p8sh system
- p7sh system
- puah system
- puzh system
- puxh system
- pudh system
- pueh system
- puwh system
- pusg system
- pusb system
- pusn system
- pusj system
Etymology of PUSH SYSTEM
The word "push system" does not have a specific etymology since it is a term coined within the context of technology and logistics. However, it can be broken down to understand its meaning and origin of the individual words.
- "Push" comes from the Old English word "pusian" which means "to exert force in order to move something forward". It has been used in various contexts to refer to the action of applying pressure or force to propel or move something.
- "System" comes from the Latin word "systema" which means "a whole compounded of several parts or elements". It refers to a set of interconnected or interdependent components working together to achieve a common goal.
Therefore, the term "push system" likely emerged in the field of technology or logistics to describe a method or approach where the movement or transfer of items, data, or information is initiated and controlled by the sending entity rather than the receiving entity.
Similar spelling words for PUSH SYSTEM
- batch system,
- push-through system.
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