Disadvantages of pushing inventory downstream
The push system of inventory control concerns anticipating inventory needs to meet customer demand. The corporation produces enough product to meet the forecast demand and push /sell the goods to the consumer.
Advantages of pushing inventory downstream
A good forecast plan can facilitate shipping the product to the customer on demand; thus, the company assures enough to complete the orders. Also,there is the maximum utilization of resources at minimum cost. The manufacturers can plan the resources better with flexibility.
Disadvantages of pushing inventory downstream
It has a forecasting error that creates non-value, adding time as sales can be unpredictable and vary from one year to the following. Leaving too much product in the inventory increases the company’s costs for storing these goods. There are long lead times that need to be shorter to increase efficiency in the operations.