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A comparative evaluation of push, pull and a combination ofpush‐pull production strategies for a multi‐product two‐stage productionsystem is presented. A mathematical…
A comparative evaluation of push, pull and a combination of push‐pull production strategies for a multi‐product two‐stage production system is presented. A mathematical model is developed to determine EBQ and optimal batch splitting and is applied to a case of a manufacturing company producing hard disk parts. The results obtained are compared with the existing practice. It is shown that a push policy results in the highest total system cost while the pull system – the least, with the hybrid policy in‐between. It is recommended that a switchover to optimal hybrid push‐pull policy is called for from the present non‐optimal push policy. Cost reduction potential for such a switchover is estimated.