In the Push inventory system, a company will build up its inventory (beyond their present demand) to take advantage of quantity discounts and other economies of scale.In a Pull inventory system, a company will not order (or produce) inventory until it is needed (due to either increased demand or production).

2. Provide an example of a company that uses the Push system and example of a company that uses the Pull system.
4. What is it about these company's processes, products or services that make them a good candidate for the particular type of inventory system they use?
6. Do you feel that one of these systems has an advantage over the other system?Explain.
8. Does the type of product demand or the production process used have any bearing on the type of inventory system the company should use?Explain.