Push Ordering System

Posted in Operations and Supply Chain Terms, Total Reads: 454
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Definition: Push Ordering System

A stocking and warehousing order system based on Inventory deployment decision made by a central authority rather than by field decision.

The order quantity is fixed and delivered at fixed interval of time.


Advantages

• The customer demand will always be satisfied as there will enough supply at Point of Sales


Disadvantages

• If forecast are often inaccurate as sales may vary from year to year based on factors

• The cost of inventory will rise if the forecasted sales are not met.

 

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