Push or Make-to-stock is producing stock on the basis of anticipated demand.

Push or Make-to-stock is producing stock on the basis of anticipated demand.

• A. Producing stock on the basis of anticipated demand
• B. Producing stock in response to actual demand
• C. Producing stock after customer orders
• D. Producing stock using demand forecasting techniques

Answer: (A)

In a make-to-stock (push) system, production is driven by forecasts of future demand, and goods are built and kept in inventory before any specific customer order arrives. The idea is to anticipate what customers will want and push product into stock so it’s ready to fulfill orders quickly. That’s why describing the activity as producing stock on the basis of anticipated demand matches the concept exactly: you’re manufacturing in advance based on expected needs, not waiting for actual orders. The other ideas describe different approaches. Producing in response to actual demand is a pull system, where production starts after orders are received. Producing after customer orders is make-to-order, also a pull approach. Using forecasting techniques is related, but the statement specifically ties production to anticipated demand and stock, which is the hallmark of make-to-stock.

In a make-to-stock (push) system, production is driven by forecasts of future demand, and goods are built and kept in inventory before any specific customer order arrives. The idea is to anticipate what customers will want and push product into stock so it’s ready to fulfill orders quickly. That’s why describing the activity as producing stock on the basis of anticipated demand matches the concept exactly: you’re manufacturing in advance based on expected needs, not waiting for actual orders.

The other ideas describe different approaches. Producing in response to actual demand is a pull system, where production starts after orders are received. Producing after customer orders is make-to-order, also a pull approach. Using forecasting techniques is related, but the statement specifically ties production to anticipated demand and stock, which is the hallmark of make-to-stock.