Question

One possible effect of a change from a push to a pull production system can be:

A) Increase in raw materials inventories
B) Employee morale issues due to a work environment cultural change related to enforced idleness when demand falls below production capacity.
C) Increase in work in process inventories.
D) Increased discrepancy between what is produced and what is demanded by customers.

Answer 1

Option B is correct as it describes potential employee morale issues resulting from the cultural shift and variations in workload associated with a pull production system. This reflects the direct impact of aligning production closely with actual demand.

Step-by-step explanation:

The transition from a push to a pull production system fundamentally changes how production is triggered and can have multiple effects on a company. In a push system, production schedules are based on forecasts or schedules irrespective of current demand, which can lead to overproduction and high inventories. In contrast, a pull system initiates production in response to actual demand, reducing overproduction and inventories.

Option B is the most accurate as it highlights a potential issue with a pull production system: Employee morale issues due to culture change and possible idleness when demand falls. Since a pull system aligns production with actual demand, periods of low demand can lead to less work, affecting employee morale if they are not accustomed to fluctuating workloads. This highlights the importance of managing the cultural and operational aspects of transitioning to a pull system.

Option A, C, and D typically align more with push production systems where forecasting errors and overproduction are more common, leading to increased inventories and discrepancies between production and demand.