What characterizes a push production system?

A push production system is characterized by production based on forecasts. In this type of system, production schedules are determined in advance based on anticipated demand, which means that goods are manufactured before they are actually needed. This proactive approach relies on market analysis, historical data, and predictions about customer behavior to guide the production quantity and timing.

In contrast to a push system, a pull production system is driven by actual customer demand, where manufacturing occurs in response to orders rather than forecasts. This helps minimize inventory levels and reduces the risk of overproduction. The push system can lead to excess inventory, as products are created ahead of time and may not match current demand, leading to potential waste and increased holding costs. Understanding this distinction is crucial in managing production efficiently according to market conditions.