Push vs Pull Inventory

Definition

Comparison of forecast-driven and consumption-triggered material flow. This reference is designed for practical industrial stores, MRO, production and materials-management environments.

Objective

Select material-flow logic according to demand certainty, process stability and service requirement.

Scope

Apply the method at item, category, location or plant level as appropriate. The control should connect planning, purchasing, stores transactions, physical verification and management review.

Required Inputs

Demand pattern
lead time
WIP
customer requirement
process stability.

Methodology

Define the business requirement, scope and review period.
Validate item master, consumption, stock and open transaction data.
Calculate or classify using the defined method.
Compare the result with criticality, supplier constraints and future demand.
Assign an action owner, due date and review frequency.
Monitor KPI movement and revise parameters when conditions change.

Formula / Control Logic

Push = replenishment from forecast/schedule; Pull = replenishment from actual downstream consumption/signal.

Worked Industrial Example

A planned shutdown spare may be push-planned; repetitive line-side fasteners can be pull-replenished.

Decision Rules

Hybrid systems are common.
Criticality and variability matter more than terminology.
Measure inventory and service outcomes.

Industrial Controls

Authorized master-data and parameter changes
ERP transaction discipline and document traceability
Physical verification and reconciliation
Exception reporting with named ownership
Periodic management review of ageing, service and capital exposure

KPIs

Service

Availability, fill rate and stock-out performance.

Accuracy

Book-to-physical reliability and transaction quality.

Capital

Turnover, coverage, ageing, excess and dead stock.

Common Errors

Assuming pull always means low inventory.
Using forecast-only push for volatile demand.
Ignoring supplier constraints.

Excel / MIS Application

Useful fields: Item Code, Description, UOM, Opening Qty, Receipt Qty, Issue Qty, Closing Qty, Unit Rate, Annual Consumption, Current Stock, Open PO, Lead Time, Safety Stock, ROP, Min, Max, ROQ, ABC, VED, FSN, Ageing, Action.

Management Review Questions

Which items require action now, and why?
Are open orders aligned with actual requirement?
Which exceptions are recurring and what is the root cause?
Which parameter should be changed, and what evidence supports the change?

Related Inventory References

Professional practice: A calculation is a control aid, not a substitute for engineering judgement, approved policy, physical verification or business-risk assessment.