A “push strategy” is a production and distribution approach primarily driven by forecasts rather than actual customer demand. In a push strategy, products are manufactured based on estimated demand and stored in inventory until they are needed. This method is in contrast to a pull strategy, where goods are produced and shipped only in response to customer orders. Push strategies are commonly employed when demand is difficult to predict accurately, or when economies of scale and efficient production processes can be achieved through bulk production. However, push strategies carry the risk of excess inventory and potential wastage if demand does not meet expectations. Effective inventory management, demand forecasting, and market analysis are crucial in successfully implementing a push strategy and balancing supply with demand.

Read More:

What is Volume Rate?