Which of the following statements is best?
I. In a pull system central supply determines what is needed by the distribution centers
II. In a push system all decisions are made by the distribution centers.
III. An advantage of a pull system is central coordination
A) I and II only are true
B) II and III only are true
C) I and III only are true
D) all the above are true
E) none of the above are true

Question

Quizplus · Accepted Answer

In a pull system, it is the demand from the distribution centers or end customers that determines what is produced or supplied, not the central supply. In a push system, production and distribution decisions are often made based on forecasts and are pushed down the supply chain, not solely decided by distribution centers. Central coordination can be an advantage of both systems depending on their implementation, but it is not specifically an advantage of a pull system alone.

Which of the Following Statements Is Best