A method used in just-in-time manufacturing processes to order production inputs and schedule manufacturing at the time a customer places an order. By basing purchase orders and manufacturing schedules on actual, rather than anticipated, orders, pull-through production helps control inventory costs.
Pull-through production also facilitates product customization. Since products are made as they are ordered, it may be possible to cost-effectively tailor an order to a customer's specific needs, instead of only offering a generic product.
Using pull-through production means that companies are less likely to purchase excess inventory, are able to reduce their inventory storage costs, and are able to reduce the opportunity costs of tying up in inventory money that could be used elsewhere. The downside is that the company must conduct multiple, smaller production runs instead of one or two large production runs, which can be more expensive if not managed properly.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
through — /throoh/, prep. 1. in at one end, side, or surface and out at the other: to pass through a tunnel; We drove through Denver without stopping. Sun came through the window. 2. past; beyond: to go through a stop sign without stopping. 3. from one to… … Universalium
Production leveling — Production leveling, also known as production smoothing or – by its Japanese original term – heijunka (平準化?), is a technique for reducing the muda waste and vital to the development of production efficiency in the Toyota Production System and… … Wikipedia
pull system — Ops a production planning and control system in which the specification and pace of output of a delivery, or supplier, workstation is set by the receiving, or customer, workstation. In pull systems, the customer acts as the only trigger for… … The ultimate business dictionary
Push–pull strategy — The business terms push and pull originated in the marketing and advertising world,Fact|date=April 2007 but are also applicable in the world of electronic content and supply chain management. The push/pull relationship is that between a product… … Wikipedia
petroleum production — Introduction recovery of crude oil and, often, associated natural gas from the Earth. petroleum is a naturally occurring hydrocarbon material that is believed to have formed in deep sedimentary (sedimentary rock) beds from animal and … Universalium
Toyota Production System — The Toyota Production System (TPS) combines management philosophy and practices to form an integrated socio technical system at Toyota. The TPS organizes manufacturing and logistics for the automobile manufacturer, including interaction with… … Wikipedia
Discographie de Dr. Dre à la production — Cette page présente la discographie de Dr. Dre en tant que producteur, producteur exécutif et parfois en tant qu ingénieur du son. Sommaire 1 Crédits 2 Notes et références 3 Annexes … Wikipédia en Français
Dr. Dre production discography — The following is a discography of production by Dr. Dre. Contents 1 1985 1.1 World Class Wreckin Cru World Class 2 1986 2.1 World Class Wreckin Cru … Wikipedia
Malice (Through the Eyes of the Dead album) — Malice Studio album by Through the Eyes of the Dead Released August 21, 2007 … Wikipedia
Systems Applications Products audit — is when a computer system from SAP undegoes an audit to check its security and data integrity. SAP is the acronym for Systems, Applications, Products. It is a system that provides users with a soft real time business application. It contains a… … Wikipedia