How does pull-through production help minimize inventories in a just-in-time operating environment?
A) Products are made in anticipation of customer demand.
B) Products are made only when customer orders are received.
C) Products are made in large production runs.
D) Products are made identically.

Question

Quizplus · Accepted Answer

Pull-through production, which is also known as a "make to order" approach, means that products are only made when customer orders are received. This helps minimize inventories because there is no need to produce excess inventory in anticipation of demand. Instead, production is based on actual customer demand, which means that inventory levels can be controlled more precisely. This approach is a key component of a just-in-time operating environment.

How Does Pull-Through Production Help Minimize Inventories in a Just-In-Time